strongest attachment to the United States and their interests. The
general opinion gives him the command of a part, if not the whole of
the combined fleets, which amount to thirty six sail of the line, now
at sea, commanded by M. Cordova. The English fleet under Geary, is
also cruizing between Ushant and Cape St Vincent, to prevent the
junction of the ships from Brest and Ferrol with the Spanish Admiral,
and to protect their outward end homeward bound convoys, and to
intercept those of the allies.
I had written thus far, when a courier arrived with the important news
of the combined fleets having fallen in with, and taken fiftysix sail
out of sixty, destined to the East and West Indies, Madeira and
Quebec. I have requested Mr Harrison at Cadiz to enclose to the
Committee a list of the prizes, and the nature of their cargoes, as it
has not yet been received here. This will be severely felt in England,
and will occasion more clamor against the Ministry, than all their
naval losses since the war. Mr Jay has heard from Congress but once
since we have been in Spain, and very seldom from our other
correspondents, the last letters from Paris, mention that Messrs
Franklin, Adams, and Dana, were well, and that Mr Adams was going to
Holland.
I have the honor to be, &c.
WILLIAM CARMICHAEL.
_P. S._ Since sending off a copy of the preceding letter, I have the
pleasure to inform you, that the gentleman expected by the Minister
has arrived, and proves to be Don Diego Gardoqui, who is already known
by his former correspondence with America. Our affairs are once more
in train, some bills have been accepted since his arrival, but nothing
certain has been as yet determined, and indeed I fear the Court is too
much pressed for money, to do anything considerable for us here in
that way. Probably this gentleman will be sent to America, by whom we
shall have an opportunity, I hope, of conveying the final
determination of the Court with respect to our affairs. The
navigation of the Mississippi appears to be the great, and if we can
credit the assertions of men in power, the sole obstacle.
Mr Cumberland has been here, and is expected again with his family in
a few days. I have been informed, that he has offered on the part of
Great Britain, to restore to Spain what they lost by the treaty of
Paris, and has been permitted to reside at this Court in expectation
of being authorised to make further concessions, and indeed on no
other principle can I account for his residence here at this crisis. I
mentioned in my letter of the 22d ult., that representations had been
made to the Court of Portugal, either to shut its ports against the
armed vessels of all nations at war, or take a part in it. I have the
honor to inform you, that the above Court has consented to the first
of these propositions, although this is not yet public. Another vessel
has arrived at Nantes from Philadelphia, by which neither Mr Jay nor
myself have received any letters. The Russian fleet, consisting of
fifteen sail of the line, and four frigates, is arrived in England.
Admiral Geary returned to Spithead the 19th ult. This fleet, it is
said, will soon be sent to sea, although he had upwards of two
thousand sick when he returned to port. Stocks fell considerably in
England when the news arrived of the loss of the convoy
beforementioned.
A fleet of seven sail of the line sailed from Ferrol the 22d ult. to
convoy off the coast a fleet of transports for the French islands, and
probably to cruise to intercept the homeward and outward bound fleets
of the enemy. This circumstance joined to the late loss of the convoy,
has raised insurance prodigiously in London. The Parliament does not
meet until the 28th of September.
W. C.
* * * * *
TO THE COMMITTEE OF FOREIGN AFFAIRS.
St Ildefonso, September 9th, 1780.
Gentlemen,
I did myself the honor of writing to you the 6th instant, via Cadiz,
Bilboa, and France, informing you that the person mentioned in my
letters of last month, as chosen by the Minister to succeed M.
Miralles, had arrived here, and proves to be M. James Gardoqui, and
that since his arrival, our affairs are once more in train. I also
mentioned that the Ministry were negotiating loans, to answer
extraordinary expenses. I expected to have been able to send the
Committee a full account of the nature of these loans, as I founded my
hopes of the Court's paying the bills drawn on Mr Jay, by means of the
supplies obtained in this way. I am therefore very sorry to inform the
Committee, that the success of the most considerable has not answered
the expectations of the Ministers, and what is worse, they impute its
failure to the interference of M. Necker and others, influenced by
that Minister, which has created a soreness, that for the moment must
be disagreeable to our ally, and may be disadvantageous to us, unless
more important considerations obviate the ill effects to be
apprehended from such disappointment, and the personal disgust and
resentment consequent thereof.
A person with whom I am well acquainted, is the projector of the loan
abovementioned, and although for near three months I have known that
such a measure was in agitation, I was not able to discover the plan,
it having been preserved with great secrecy, in order to secure its
successful and complete operation. As this measure is so far important
to Congress, as it may influence the conduct of the Court with
respect to money matters, and affect the credit of the nation in
future, on which all the vigor of military operations in a great
measure depends, I will endeavor to give the outlines of the money
negotiation to the Committee, and will forward the plan and the King's
ordinance thereon as soon as I receive them.
The original design of this loan was to procure nine millions of
dollars, or thirtysix millions of livres in four months, and possibly
to enlarge the sum according to exigencies. The projector was to
receive ten per cent for expenses and profit, which he was at liberty
to divide as he thought proper with the original lenders. To these, I
think, he gave three, or three and a half per cent for the use of
their money for four months, which money they were to remit in bills
of exchange on Spain, and to redraw at the end of four months for
their principal and interest. The great secret of the operation is,
that government instead of repaying their bills in specie, issues
paper to repay them, the credit of which is guarantied by the Crown
and the different Chambers or Councils of the Kingdom, viz of Castile,
&c. &c. This paper bears an interest of four per cent. A _cedula_, or
royal ordinance, will be published the 20th or 21st of this month,
which gives it currency, and inflicts severe penalties on any one who
refuses it as a legal payment. M. Necker did not discover the latter
part of the scheme until large sums had been remitted from France, and
I suppose, fearing that its operation would be complete before his
representations of what he thought its evil tendency, could be
attended to here, he immediately gave orders not to receive the bills
of exchange of the houses concerned in this measure at the _Caisse
Royale_ in France. Besides, the house of Gerardot, Haller & Co. one of
the most considerable in Europe, and of which he was once the head,
and his brother is still a partner, wrote circular letters to all
parts of Europe discrediting the loan.
The consequence has been, that the persons in France and elsewhere,
whose bills were refused at the _Caisse Royale_ have been pushed here
so hard by their creditors, that the Spanish government has been
obliged to make considerable remittances to support their credit, that
further advances of money have been stopped, and that bills of
exchange on Spain have sold at a loss of one and one and a half per
cent. This has irritated the merchants here, and perhaps we may be the
innocent victims. For I am persuaded, that Spain, without obtaining it
by loans, has not money in Europe to afford us considerable aids, how
great soever her inclination may be to assist us, and I think the
Committee will be of the same opinion, on reading the information I
gave Mr Jay on the subject of the revenues of this country, in
consequence of his instructions to me at Cadiz.
I shall be happy to have it in my power to inform the Committee, that
my apprehensions have been ill grounded.
The fate of our bills must soon be determined. More than forty
thousand dollars have been presented, of which the amount of about
fourteen thousand have been accepted by order of the Minister. The
Count d'Estaing will leave this in a few days, and go to Cadiz; by the
time he can arrive at that port, the whole of the combined fleet will
be assembled; thirtysix sail are now at Cadiz, seven on a cruise, and
two of a hundred and one hundred and ten guns are on their voyage from
Brest. The Count will urge a vigorous and decisive conduct, and seems
to enjoy the King's esteem, and the good will of most of the Ministers
and Courtiers.
The English emissary, Mr Cumberland, is still at Madrid, and is
permitted to receive from and send couriers to London. The conduct of
the Court appears unaccountable, and I cannot persuade myself, that it
can be agreeable to France, although the Count de Montmorin frequently
assures me, that we need not have any inquietude on account of the
gentleman's residence. He no doubt, however, endeavors to insinuate
many things to our disadvantage, and makes propositions to alienate
Spain from the alliance with France, and from supporting the United
States. Those about him are perpetually circulating bad news from
America, and assert with confidence, that several States and many
individuals in others, are negotiating to make their peace with Great
Britain. Spain may possibly be amusing his employers, as he is
employed to amuse the Spanish Ministry.
The treaty for an armed neutrality was signed by Sweden the 4th of
August; Denmark had not signed it the 8th of the same month, but there
is no doubt she will. The English party in Holland opposed and
retarded it there as long as possible, and finally clogged it with
such conditions as they hope will prostrate the negotiation; for
instance, they propose to the contracting powers, to guaranty all
their possessions in Europe, Asia, and America, but as the States have
gone so far, they will scarce recede, should this article be refused
by the others. The eyes of Europe are anxiously turned to America and
the West Indies; the friends of liberty hope everything from our union
and perseverance, and the expectations of our enemies are founded on
the reverse. Neither Mr Jay nor myself have received letters from
Congress since we left America, except one from the Committee,
enclosing the bills of exchange, so that we are without intelligence,
without money, or the certainty of conveying to Congress as regularly
as we wish, the information necessary for them to receive, which will
plead my apology with the Committee for the repetitions they will meet
in this letter of what several other letters contain.
I have the honor to be, &c.
WILLIAM CARMICHAEL.
_P. S._ The declaration of Portugal, shutting their ports against the
armed vessels of the nations at war, which I mentioned in a letter of
the 6th, has not yet been made public. It is supposed that the present
Parliament will be dissolved and a new one called, while the influence
of the present Ministry continues high. Considering the scarcity of
cash in this country, and the present situation of affairs, perhaps
Congress will do well to stop drawing on Mr Jay, until they receive
information that their bills will be paid punctually. There appears no
forwardness in this Court to enter into treaty; the navigation of the
Mississippi is the great obstacle; the situation of America will guide
the determinations of Congress, and I hope it will be such as to
enable them to preserve the rights of all the States. Negotiations
will, probably, be set on foot this winter, and it is likely this
Court will be the theatre of them. As Spain has as yet taken no
decided part in our revolution, England will rather choose to apply to
this Court, and keep up the old idea of restoring peace by her
mediation, than that of Versailles. Hints have been given, that it
would be more convenient for Spain to furnish the States with money in
America than here, but as they seem to think that America has not
proposed an equivalent for what they demand, I am afraid assistance
will be given very faintly.
W. C.
* * * * *
TO THE COMMITTEE OF FOREIGN AFFAIRS.
St Ildefonso, September 25th, 1780.
Gentlemen,
I did myself the honor of addressing you the 6th and 9th instant, and
in the latter expressed an apprehension, that Congress would not
receive the pecuniary aid they expected in this country. I am now
sorry to inform you, that on the 13th, Mr Jay was told by order of the
Minister, that their own exigencies would not permit the King to
provide funds for the payment of more of the bills than had been
already accepted. I make no reflections on this event, and hope the
Committee will suspend theirs, until Congress shall have received from
Mr Jay, a relation of all that has passed here since the month of June
last, with the papers necessary to elucidate it. In a day or two after
the above information, his Majesty was pleased to offer his
responsibility to facilitate a loan for one hundred and fifty thousand
dollars in favor of the United States, and to promise some clothing,
&c. &c.
On the 23d, Mr Jay had a long conference with the Count de Florida
Blanca, the particulars of which I immediately reduced to writing, as
I have done with respect to others which preceded this, copies of the
most material parts of which Mr Jay will, probably, forward to
Congress with his other despatches. In this conference, the Count
spoke with much pleasure of a resolution of Congress, permitting the
exportation of flour, for the use of the Spanish fleets and armies in
the West Indies, as also of measures taken by them to make a
diversion to the southward, to facilitate their operations against
Pensacola, &c. &c. He said to Mr Jay, that the King had directed him
to convey his thanks to Congress for those marks of their friendly
disposition, and gave the strongest assurances, that his Majesty would
never consent to a pacification, which did not include the interests
of America, declaring at the same time, that the negotiations for
peace were more remote than ever, although, as he observed, the King
had been offered all he could desire from England, in order to induce
him to a separate peace. He informed Mr Jay he had received
intelligence, that Great Britain once more proposed to send
Commissioners to treat with Congress, that this measure was under the
consideration of the Privy Council, and would, probably, be adopted.
I seize the earliest opportunity of conveying to the Committee thus
much of the conference, as most important for Congress to know, to
which I add, that the Minister promised to take immediate measures for
putting it in the power of Mr Jay, to evidence and avail himself of
the responsibility of the King, and forwarding from Cadiz clothing for
ten regiments, for the use of the American army. In the course of this
conference, the Count de Florida Blanca asserted with warmth, that the
King would never relinquish the navigation of the Mississippi, and the
Ministry regarded the exclusive right to it as the principal advantage
Spain would obtain by the war. This being the bar to the treaty, it
seems not improbable, that this Court will not be in a hurry to treat
with us, but rather trust to her interest in a general Congress for
peace to obtain her favorite objects, preserving, in the meantime,
such a line of conduct, as will enable her, in some measure, to be a
mediator in it, with which idea she has been, and is flattered by
England.
Mr Cumberland, whom I have frequently mentioned in former letters,
still remains at Madrid. The Abbe Hussey, his coadjutor, has just
received a passport to go to Lisbon, from whence he will, probably,
embark for London, and return with the ultimatum of that Court, and
intelligence for the Spanish Minister, for it is not improbable, he
may be a better spy than negotiator. All this, however, is conjecture.
In all probability, great efforts will be made next campaign in
America, if the war continues, as we are told it will. The great
objects of it are in that part of the world. France is engaged at all
hazards to support our independence, and will do it, and Spain is
desirous of possessing the entire navigation of the Gulf of Mexico. I
take the liberty of repeating these reflections to the Committee, as
they arise from conversations on this subject with persons in a
situation to be well informed.
The different powers at war will, however, find some difficulty to
procure money. England has not completed her last loans. France has
begun to tax, and must continue to do so, notwithstanding the great
economy of their Minister of Finances. The last operations of this
Court to procure money, of which I gave the Committee a sketch in my
last letter, and the state of the revenues, which I gave Mr Jay in my
answer to his instructions, will show them the wants of this country.
The interference of M. Necker in the operation beforementioned,
deprived this Court of near two millions of _pesos_, and greatly
irritated the Ministry. I hope, however, their resentments have
subsided. This failure, they give as one reason for not being able to
advance the money we expected, to enable Mr Jay to pay the bills
drawn on him by Congress. Mr Jay has, however, at all hazards,
accepted those which have been presented, and is taking every step in
his power to provide money to pay them, as also those that may be
disposed of in America, previous to the advice he has given Congress
on this head.
The English Ministry are likely to have a large majority in the new
Parliament, which is generally the case in time of war. The great
neutral maritime powers of Europe, seem to regard the present war as
an event favorable to the augmentation of their commerce, and will,
probably, do so, until one or the other of the contending parties
engaged in it appear to have a decided superiority. Portugal seems
better disposed to the allies than heretofore. This change is,
probably, the result of fear, more than of affection. The combined
fleet at Cadiz, consists of fortythree sail of the line, besides
frigates, &c. &c. The Count d'Estaing commands the French part of the
fleet, and the whole is in readiness to put to sea. During his
residence at this Court I was frequently with him, and he professes
the same ardent desire to serve us as ever.
I cannot forbear mentioning to the Committee, my sense of the friendly
and polite conduct of the Count de Montmorin to me ever since my
arrival here, nor can I conclude, without remarking the good effects
that our union, vigor, and perseverance have had in Europe. A
continuance of these will render us respectable to our enemies, and of
consequence to our friends.
I have the honor to be, &c.
WILLIAM CARMICHAEL.
* * * * *
TO THE COMMITTEE OF FOREIGN AFFAIRS.
Madrid, October 15th, 1780.
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 embarrassments 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 restitution 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 retard, 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.