during the present year; which indeed, is true, and for that reason,
I have added to the bottom of the account the extent of one year's
interest on Loan Office certificates, and which is more than will, I
believe, be presented. The next article, number thirteen, is for bills
which had been drawn on you, and have been stopped by me. The article,
number fourteen, is, you will perceive, for bills, which in all human
probability will have been paid during the last year. The certainty of
this transaction is doubtless with you, and what we are now upon is an
estimate, not an account. The remaining articles speak clearly for
themselves; wherefore I conceive myself well founded in making the
amount of deductions in this estimate, nine millions one hundred and
sixtythree thousand two hundred and sixtyfive livres; so that after
including one year's interest, as is already mentioned, the total is
five millions eight hundred and seventythree thousand one hundred and
twentyeight livres, thirteen sols, and four deniers; and from this
there must be some deductions, because undoubtedly you have paid some
of the bills drawn on Spain and Holland before the first day of
January last. I have mentioned no sum for this purpose, but in order
to be within bounds, I will suppose it to be only three hundred and
seventythree thousand one hundred and twenty eight livres, thirteen
sols, and four deniers, and then the extent of the bills payable by
you in the year 1781, will be five millions and a half of livres; and,
therefore, the four millions granted by the Court, and the million and
a half said to be stopped by you in Holland, will apply to this
demand.
As the last mentioned sum appears by the Count de Vergennes' note, to
have been part of that, which was given by the Court, this state of
the matter will leave clear the ten million livres to have been
loaned, and seems properly to consist with the Count's note of the
16th of May, and his letter to you of the 8th of June following. I
have mentioned above, that in making the deduction for bills paid
previous to the year 1781, I meant to be within bounds. It is proper
to give a reason why I supposed that deduction to be so. I have
already made one remark on the article A one two and F, in the account
officially communicated by the Minister of France in September last.
From those articles it appears at least that three million livres were
advanced for the payment of bills last year. The amount of the
interest bills, I have already stated as being in the extent, two
millions one hundred and ninetythree thousand nine hundred and ninety
livres, to this sum must be added one hundred and fortyfour thousand
livres, due to M. Beaumarchais, and the one hundred and twentyfive
thousand livres deducted in the estimate, as having been drawn for by
the Resolutions of the 19th of May, 1780. These sums together amount
to two millions four hundred and sixtytwo thousand nine hundred and
ninety livres; to which I will add for contingencies one hundred and
thirty seven thousand and ten livres more, making the whole amount two
millions six hundred thousand livres; wherefore suppose the grant of
moneys to pay bills for the year 1780, to have been but three million
livres, and it appears evidently to have been at least that, there
would have remained in your hands a balance of four million livres;
which is more than I have deducted from the amount of my estimate.
On the whole, then, I conceive myself well grounded in the opinion,
that the whole loan is still at our disposal, and this opinion is so
well supported by the Count de Vergennes' letter to you, that I might
with great propriety insist on that point. The letter, therefore,
which I shall write with such act of Congress, as may be made, in
consequence of yours of the 11th of June, will proceed entirely upon
that supposition.
I must, however, remark to you in this place, that I by no means
intend to insist rigidly with the Court, on points which may incommode
them. We are neither in a situation to do it, nor would it be proper
even if we were. But while I say this, I do not mean to preclude
myself from such observations as my duty shall render necessary, on
any transaction which has happened, or which may happen hereafter.
I enclose you an account, containing the extent of what I conceive to
have been the appropriation of the supplies above mentioned, together
with an invoice from the Board of War, amounting to the sum of one
million seven hundred and seventyseven thousand five hundred and
twenty livres and ten sols, and which I will call one million eight
hundred thousand livres, from which it will appear, that there must
remain, subject to my disposition, the sum of four millions at least,
after replacing the Lafayette's cargo, and purchasing the articles
mentioned in the invoice.
I have had the honor to mention to your Excellency, that I have the
misfortune to differ in opinion with the Minister of France. This is
upon two points, namely, the drawing of bills by me, and the amount of
what may remain due by the Court. From the correspondence between us,
which is contained in the enclosed papers, there will appear to have
been some warmth on the occasion, but this rather arose from the
nature of the transaction, than anything else. I know not what
impression it may have left on his mind, but for my own part, as I
greatly respect him, I sincerely feel for a situation, to which the
orders of his Court have reduced him; and although the language of his
letter of the 24th of November, evidently intended for his Court, was
so pointed as to force me into the observations contained in mine of
the 26th, in my own justification; yet I was almost as much wounded
while writing, as he appeared to have been at reading it. I am much
inclined to believe, that he wishes to place this business
substantially in the same point of light that I do. The whole
correspondence is enclosed, that you may be in a capacity to make any
proper observations, which occasion may dictate.
Before I take up this correspondence more particularly, I must detain
you one moment longer to mention the facts, which preceded it. Before
my acceptance of the office I now hold, the Chevalier de la Luzerne
informed me, that the Court had given money to the United States, with
a determination that it should be at the disposal of General
Washington, but that upon my acceptance, he would authorise me to draw
for it. It was agreed between us, that I should draw for five hundred
thousand livres, and so much be deposited to answer the drafts, and by
giving him notice in season a new deposit of five hundred thousand
livres should be made, and so on from time to time. Shortly
afterwards, I formed a plan to get money from the Havana, and
explained it to the Chevalier. He approved of it, and in consequence,
I drew a bill on Messrs Le Couteulx & Co. the 17th of July, for five
hundred thousand livres, but the capture of the Trumbull frigate
prevented the negotiation of that bill, which being then on board of
her, intended for Havana, was sunk with my despatches; and the
knowledge that Colonel Laurens was then on his way with specie,
together with the expectation of that, which was to be sent by the way
of Holland, prevented a repetition of the experiment upon Havana at
that time. It was previously to the 2d of July, 1781, that the
Chevalier agreed that I should negotiate bills for one million five
hundred thousand livres, of which the five hundred thousand livres to
have been negotiated at the Havana, was a part.
You will see enclosed my letter of the 2d of July upon this subject,
which was the day before M. de la Luzerne went to camp; and also M. de
Marbois' answer to it. My reply of the 4th closes the matter at that
time; and then it was understood on all hands in the manner I have
just now mentioned, and which I have, you will perceive, insisted on
through the whole of my correspondence, and which was equally insisted
on in a variety of conversations.
That part of the letter last mentioned, which relates to the effect of
drawing bills, together with the letters of the 2d and 3d of August,
need no comment. They merely serve to show the desire, which animates
the servants of the United States, to economise the resources of
France. I am not disposed to criminate, but it is right that I should
inform you of my opinion, which is, that the French troops in this
country have cost much more than was necessary, if my information is
not extremely erroneous. I have now in contemplation plans for feeding
them more cheaply, and I think the French ration ought not to cost
more than half a livre, at least not much more, if so much. The
officers who now return to Europe can best answer, whether it has
formerly exceeded that amount, and the Court must know how much has
been lost on the negotiation of their bills. While on this subject it
is my duty to add, that the Minister of France here, has demonstrated
the most earnest desire to introduce economy in the expenditures of
the army, and that the readiness shown by the Count de Rochambeau, and
other general officers, to aid in it, demand acknowledgements.
On the 24th of September the Chevalier wrote me a note, of which a
copy is enclosed. This, you will observe, was after the receipt of
those letters, in consequence of which, he, among other things,
communicated the account, on which I have already had the honor of
making some remarks. This letter, while it assigns reasons for
continuing my drafts, shows clearly that the Chevalier had
communicated his instructions to stop them, which was done, not only
to me, but to the committee. But I confess, that I was very far from
considering those instructions as absolute. I concluded, that a line
of discretion had been left to the Minister; and, indeed, his answer
to my letter confirmed me in that opinion. This answer is of the 26th.
He does indeed say, that _it is impossible to depart from the precise
instructions received on that subject, and authorise my drafts to the
amount of two millions five hundred thousand livres_; but he
immediately goes on to permit an addition of two hundred and
ninetyeight thousand nine, hundred and eightyone livres, fifteen sous,
and four deniers. Wherefore, it followed, that either those
instructions left him at liberty to extend those drafts, or that he
was at liberty to disregard the instructions. I therefore did expect
to have gone on to the sum first agreed for. These expectations were
frequently mentioned in conversation, and particularly so in that
alluded to in mine of the 22d instant.
On the other hand, I must acknowledge, that he always mentioned his
instructions, but so as to leave me under the original impressions I
had received. As this letter of the 22d takes notice of another
matter, it is proper to mention here, that the Chevalier had observed
on a difference between the account he delivered officially to the
committee of Congress and the note to the Count de Vergennes; but no
pointed conversation on this subject had taken place, he expecting
further information from his Court, and I hoping daily to hear from
you, and being unwilling to raise a question unnecessarily. The reason
why I did at last bring it forward is contained in my letter, and
therefore I shall say nothing about it. The account sent in that
letter, needs no comment, although it differs very widely from that
marked thirtythree.
I shall only note, that if the sum of six hundred and eightysix
thousand one hundred and nine livres be taken from that mentioned as
advanced for stores by order of Colonel Laurens, so as to render that
article conformable to what is said in the Count de Vergennes' note,
the same sum must be added to the balance; by which means placing the
one million five hundred thousand livres, to have been drawn for by
me, in the stead of that to have been sent out from Holland, the whole
will stand as first above mentioned, leaving the amount of the loan
untouched. In the close of my letter, I mention a determination to
draw _on account of the balance_, an expression which appears to have
been mistaken. The reason of the assertion will in some degree appear
from the answer to it. I will add, that, although I shall not risk the
drawing of bills while there is any chance that they may return
protested, I must, nevertheless, take measures to obtain the money for
very evident reasons, and it is with this view, that I have drawn on
you in favor of Messrs Le Couteulx & Co. for one million livres.
You have also a copy of the letter written on the 24th instant, in
answer to that last mentioned. I shall not here notice the difference
between what we have said about the additional million, as well
because it is in substance the same, as because I had not insisted on
drawing for it. In like manner, I shall say nothing about the
permission given me to extend my drafts after the orders to stop them
brought by Colonel Laurens; but you will observe, that the pointed
declaration, that the letter of the 26th of September _could not leave
me the shadow of a hope, &c._ (with what follows it) stands in such
direct opposition to the whole tenor of my letter and to the real
state of my expectations, that to have submitted in silence, would
have been tantamount to the acknowledgement of falsehood. It is indeed
easy to perceive, that the Chevalier wrote this letter to his Court,
although he directed it in the first instance to me; and I conclude it
to have been in consequence of his last despatches, which had not been
received long before his letter was written. The equivocal use of the
expression _as soon as possible_ will not escape you, Sir; but it
shall meet no other remark from me than this, that I am convinced the
Court will not apply it in the same sense with the Chevalier. Neither
the dignity of the Prince, nor the magnitude of the occasion will
permit a reliance on such distinctions.
The state of the account made in this letter, I really do not see the
propriety of. It seems to have been, in some degree, extracted from
the account furnished in September to the committee of Congress,
because, if the mistake of six thousand livres in the castings of that
account be rectified, it will make the first sum total amount to
fifteen millions one hundred and ninetynine thousand five hundred and
one livres, from which deducting ten million livres, being the amount
of the subsidy of six million livres and loan of four, there will
remain the first article of that account, namely, five millions one
hundred and ninetynine thousand five hundred and one livres. But if
this be the case, it is a little surprising, that the Chevalier should
not have noticed a deduction made in that very account of the two
first articles, amounting to three millions four hundred and sixteen
thousand livres, which are, it is there said, to be added to the
advances formerly made to the Congress.
It is somewhat extraordinary, that all these should be considered by
the Chevalier as advances made in the month of September. For although
that account was rendered in September, yet four millions six hundred
and ninetyfour thousand three hundred and ninetytwo livres are
expressly mentioned as being to be furnished. I shall dwell no longer
here, but I must repeat, notwithstanding the polite manner in which
the assertion has been contradicted, that my operations have received
a very severe, as well as material check, from stopping my drafts;
not so much on account of the value of the three hundred thousand
livres, as because, while they were negotiating, I should undoubtedly
have received those advices from you, which would have enabled me to
go on in the same line. I had brought the exchange up very nearly to
par, and should soon have sold at seventeen pence this money
(Pennsylvania money) for a livre, or eight shillings and sixpence for
a crown, which is worth here at the extent but eight and four pence.
This would, therefore, have been two per cent advance, with a saving
of time, freight, and insurance; and, although a very large sum could
not have been negotiated during the winter, perhaps not more than one
million five hundred thousand livres, yet that would have enabled me
to go on making the preparatives for an early and vigorous campaign,
and kept everything in train, till some money could have been either
shipped from Europe, or so negotiated as to be sent hither from
Havana.
I will take no notice of what is said in the letter now before us, as
to the error of six thousand livres, because you must at once perceive
how little it was an object of conversation, and how easy to be
remedied by any clerk, without waiting either orders or instructions
from the Court; and because you must also perceive the material
omission of four million livres, which cannot be overlooked, let the
calculations be combined as they may. I have not, however, the less
concern about it, because so rigid an adherence to so palpable an
error leads me to fear a design, which the generous conduct of the
King will not permit me to suspect.
Having already given my sentiments as to the interest of Loan Office
certificates, I will not now repeat them. As to the replacing the
Marquis de Lafayette's cargo, it is a matter which I will not
seriously contend about, because, although there will not be use for
all the articles, there certainly will for many of them; and therefore
I hardly think a representation on that score necessary, because there
is no use in multiplying disagreeable considerations. But, by the way,
I must observe, that it is a little extraordinary this cargo should
have been replaced out of the loan to have been opened, &c. at your
request, while at the same request money could not be obtained to pay
the bills drawn by the order of Congress, as appears from your letter,
and that from the Count de Vergennes, which is enclosed in it. The
idea of making advances for any individual State from the funds of the
United States, must never be admitted by any servant of Congress. It
will be quite time enough to do that, when they shall have complied
with the several requisitions made upon them, and when they shall have
intrusted these subaltern negotiations to the Ministers whom Congress
have appointed. Such advances stand on a very different ground,
indeed, from those made for purchasing a like cargo to that of the
Lafayette; and it cannot be expected, that they should be passed to
the account of Congress. Besides this, the successes to the southward
have rendered succors of that sort unnecessary. What has already been
said will render observations on the letters of the 26th instant
unnecessary.
On the whole matter, I have to request your exertions to have this
affair settled as soon as possible, and that you will cause the whole
of what remains to be paid over to Messrs Le Couteulx & Co. sending
me notice thereof by every opportunity, that I may attend to the
disposition of it. I mean, nevertheless, that a reservation should be
made of what is necessary, to purchase the articles mentioned in the
enclosed invoice of the Board of War. I wish you to have as little
trouble as possible in this business, and, therefore, I am to request
you to employ in it Mr Barclay, our Consul General, and Mr Matthew
Ridley. They are both gentlemen of knowledge and integrity, and I
doubt not will perform it with economy and expedition.
You will also be pleased to take arrangements with the Minister of
Marine, and give your consequent orders to those gentlemen, so that
all articles of every sort and kind, which are the property of the
United States, and now in Europe, may come under safe convoy to this
port. The Marquis de Lafayette, who is charged with the General's
instructions on military subjects, will assist in combining matters,
so as to accomplish these objects. I confide, Sir, that your wisdom
and his vivacity will produce the most beneficial consequences.
Let me add, while I mention the depositing all which remains due to us
with Messrs Le Couteulx & Co., that I wish you, in conformity to the
Act of Congress enclosed, to pay the sum of fortytwo thousand one
hundred and eightynine livres therein mentioned, with the interest, to
William Lee. Let me also mention my desire, that you would retain two
millions two hundred thousand livres to pay interest bills drawn from
the 1st of September to the 1st of April next. I will take such
arrangements as will save you the trouble of doing this business in
future, and I mention it here, although the money will come more
properly under the head of supplies to be asked from the Court for the
ensuing year.
The declarations, that no more pecuniary aid will be afforded to us,
are very clear and explicit, but I trust, that these declarations will
not be adhered to. The interest bills, as I just now observed, will
amount to about two millions livres. You have to pay M. Beaumarchais
two millions five hundred and fortyfour thousand livres, and the
clothing and stores necessary will amount to four millions livres.
Besides all this we must have money, so that it will become necessary
to obtain at least twelve millions. When I mention this sum, I take
the lowest, and I do it from my sincere desire not to burden the
finances of France with American demands; but I think such clear
reasons can be assigned for it as must produce conviction.
You have a copy of my letter to the Chevalier of the 3d instant upon
this subject. You will have observed, that my circular letter of the
19th of October, which was enclosed in this of the 3d instant, is so
formed as to lower the expectations of the several States, and
accordingly the account sent with it is framed from the erroneous one
before mentioned, and the four millions are totally omitted. The
languor of the States had been so fostered by their teeming
expectations from France, that it became my duty to prevent if
possible the ill effects of it. But on the other hand, a circular
letter could not but be public, and it necessarily contained such
matter as must stand in the way of procuring a proper settlement of
past accounts with the Court, or of obtaining future supplies from
them. I, therefore, communicated that letter to the Minister, and as
he very naturally asked a copy, I took the first opportunity, after
the many necessary copies could be made out, to send it with mine of
the 3d instant. This contains, as you will perceive, some short
reasons why we want, and why France should grant, pecuniary
assistance. The answer to it of the 4th instant, and my reply of the
6th, close the correspondence on that subject.
This last was intended to take off from the force of those
observations, as to the King's wisdom and integrity, which had rather
more of republican simplicity, than courtly elegance. As my letter of
the 3d was not intended to convince the Minister, that being
unnecessary, as I am persuaded the conviction was already produced,
but to prevent any improper conclusions from my circular letter, so it
was unnecessary to make any particular reply to his observations,
because, after all a paper argument in Philadelphia can have but very
little influence at Versailles; and as the Chevalier observed very
properly in one of his letters, the instructions from his Court must
necessarily form the basis of his opinion. The proper and useful mode,
therefore, of convincing him, is by stimulating them.