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
circumstanced. 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 Cumberland, 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 compassion 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 assured
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 circumstance, 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 circumstance 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
Cumberland 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 L100,000 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 pass, 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 circumstance, as it will retard the operations of the ensuing
year. Mr Cumberland 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 circumstance, 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,
I wrote you the 24th ultimo,[9] since which I am advised, that the
Abbe Hussey is on his way from Lisbon to this capital, as is supposed
with further propositions on the part of England. I think they will be
as fruitless as the former. I have the pleasure of informing you, that
on the 19th ultimo, Great Britain declared war in form against
Holland. A courier brought the news this morning, which has given
great pleasure to the Court, if one may be allowed to judge from
appearances. Expresses were immediately despatched by the Ministry to
the sea-ports, to advise the Dutch consuls of this event, and to offer
the protection of convoys, &c. &c.
It is supposed, that the Empress of Russia will resent this
declaration of England, as it is posterior to the notification of the
accession of the Republic to the armed neutrality, which is the real
though not the alleged cause of the war, for I make no doubt events
will discover, that this measure was resolved the instant the English
Ministry knew, that the accession of the States to that treaty was
inevitable. I shall take care to give you minute and regular advice of
the consequences likely to result from this event; meantime permit me
to felicitate you on the acquisition of new friends.
The English fleet returned to Portsmouth in a bad condition, without
having made any attempt against that of Count d'Estaing, of which they
were thrice in view. The French fleet was not arrived when the courier
who brought the agreeable intelligence before mentioned left France.
This Court expects to obtain the sums necessary for the expenses of
the year. I hope to transmit the plan of the proposed loan in my next
letters.
I have the honor to be, &c.
WILLIAM CARMICHAEL.
_P. S._ Lest my letter of the 24th ultimo should miscarry, I repeat,
that the Court has engaged to supply Mr Jay with three millions of
reals, in addition to eighteen thousand dollars already furnished,
which with the twentyfive thousand promised by France, will nearly pay
the bills already presented, and I hope ways and means will be found,
to provide for the payment of the residue, drawn and sold before
reception of Mr Jay's letters of advice.
W. C.
FOOTNOTES:
[9] Missing.
* * * * *
TO THE COMMITTEE OF FOREIGN AFFAIRS.
Madrid, January 29th, 1781.
Gentlemen,
My last advised the Committee of the declaration of Great Britain
against Holland; the capture of a great number of prizes, in
consequence of this unexpected attack encourages the former, and has
greatly irritated the latter. The States, Zealand excepted, seem
disposed to act with vigor against the common enemy. If they
persevere, they may finally disappoint their rapacious projects. They
depend on the interference of Russia, and I believe with reason,
although a day or two ago, the Count de Kaunitz, the Imperial
Ambassador here, offered his master's mediation, in conjunction with
the Empress of Russia to terminate the differences subsisting between
the belligerent powers. No answer to this offer has yet been given.
The Minister from Russia has not yet received the orders of his Court
thereon.
The offer is rather ill timed, and I have reason to think is not very
agreeable to the Courts of Versailles and Madrid, which will act with
entire union on this occasion, and as long as the present King of
Spain lives, it is probable, that this good understanding will
continue on the whole continent, although there are some here, I
believe, who would wish to see it interrupted. While it subsists Spain
will not abandon our interests, though it may not support them with
such good will, as they would have been induced to do by the
obligations of previous engagements with the United States. It is not
likely that these will soon take place, notwithstanding the appearance
of good will, and repeated assurances which Mr Jay has received of his
Majesty's favorable disposition. Nor will the late change of measures
adopted by Congress effect this, if I am not misinformed. I have not
seen these resolutions in full, nor do I know that Mr Jay has received
them, but I have reason to believe, that the Court has a knowledge of
them, either by intercepted letters, or by a direct communication from
America. In short I repeat to the Committee, what I have taken the
liberty of remarking before, that it was probably the policy of this
Court to leave the adjustment of their claims to be settled at the
general negotiation of a treaty of peace, and to reserve to
themselves the liberty of acting then according to circumstances,
unless they can previously secure in their own manner their favorite
objects. This accords with the conduct they have hitherto observed,
and with maxims of policy long adopted and persevered in by this
Court.
In the meantime, they show a decided disposition to continue the war.
They expect some treasure from America. They are likely to procure
eight millions of dollars on loan, and have propositions from other
quarters. The taxes have been augmented this year, the produce of the
last having, as I have been told, fallen short of the expectations of
the Ministry. They have thirtysix sail of the line under sailing
orders at Cadiz, which fleet will probably cruise to meet the treasure
ships expected, and to intercept the succors destined to Gibraltar.
They have ordered a press throughout the kingdom to fill up their
regiments. The ships with the treasure were to sail from Vera Cruz to
the Havana the 11th of October. The Court seems apprehensive of the
Emperor's intentions, and cultivates the friendship of the King of
Prussia, for which purpose it is about to send a Minister to Berlin,
where they have had none for many years past. This matter is not yet
public, and will undoubtedly chagrin the Court of Vienna.
Mr Jay has been promised a part of the three millions of reals,
mentioned in my former letters, to enable him to discharge the bills,
which become due the ensuing month, and, I suppose, will receive the
whole as the bills become payable, until the sum is exhausted, before
which time, funds must be provided for such as have since been
presented, or may hereafter come to hand. It is with pain I have
lately entered to the amount of between thirty or forty thousand
dollars, at three months' sight, as there is yet no certainty of their
being paid, yet I flatter myself that the Court, with the good
disposition it appears to have, will not suffer our credit to be
ruined, after what it has done and promised to do to preserve it.
M. Gardoqui, so often mentioned, will embark in six weeks or two
months. Mr Cumberland is still here, inspiring all the distrust and
jealousy in his power to prejudice our affairs. I hope, however, he
will soon be dismissed. Vigorous preparations are making in France,
and I flatter myself that the Count d'Estaing will once more visit our
coasts in force. I believe he desires it, and I am told he is on good
terms with the new Minister of Marine. The Count de Vergennes was in a
bad state of health by the last advices from Paris, but for
information from that quarter, I refer the Committee to letters I
suppose Congress will receive from Dr Franklin. It is with hesitation
I venture to give my sentiments, and if I should be deceived, it is
not for want of pains, but of opportunity of obtaining more accurate
information.
I have the honor to be, &c.
WILLIAM CARMICHAEL.
* * * * *
TO THE COMMITTEE OF FOREIGN AFFAIRS.
Madrid, February 22d, 1781.
Gentlemen,
My last was of the 29th ult. since which, I have deferred writing, in
hopes of having it in my power to give the Committee more distinct
information of the actual situation of affairs in Europe at this
important crisis, when its attention is turned to the conduct of the
Empress of Russia and the armed neutrality, and to that of the
Emperor, who, notwithstanding the offer of mediation, I had the honor
to mention in my last, is, as I am informed, regarded with a jealous
and suspicious eye. But the vessels, which take on board part of the
clothing, of which I advised you at the time, and since it was
promised, being about to sail, I seize the present occasion of
writing, lest another from the ports of this kingdom should not soon
present itself.
Our affairs here are in much the same state as when I last wrote the
Committee. No further progress has been made in the negotiation. Mr
Jay has received various letters and papers from Congress, dated in
October. This day he has obtained an order for thirtytwo thousand
dollars, to pay for part of the clothing to be shipped at Cadiz, of
which he has not yet received the invoices, and to discharge the bills
due this month. The Minister promises to furnish the whole of the
three millions of reals mentioned in former letters, and to contribute
to our further relief, as far as the exigencies of the State will
permit him. These, I have reason to think, are urgent and great, and
that the funds arising from the revenues and loans are, for the most
part, appropriated before they are received.
I am not informed, that any positive answer has been given yet to the
Emperor's offer of mediation. It is ill-timed, and I believe, in
reality, is not well taken. I know that this Court is about to send a
Minister to Berlin, where they have had none for a long time. The
circumstances of such an appointment at this juncture, seem to imply
apprehensions of the Emperor's intentions. I enclose two extracts of
letters sent to me by M. Dumas, which contain intelligence that
indicates the intentions of the Empress of Russia. The first letter I
know to be genuine, for I saw the substance of it here in _good_
hands, before I received M. Dumas's letter. If the Empress does not
openly declare against England, she will, at all events, protect the
Dutch commerce, and this must terminate speedily in open hostilities.
I have observed, of late, a change of conduct in the Russian
Ambassador at this Court, whom I have an opportunity of meeting
frequently in company; from being cold and distant, he is complaisant
and affable. I also find him very attentive to the French Ambassador.
Portugal has been much pressed by Russia to accede to the treaty of
the armed neutrality, but the English party at this Court is too
strong to expect success from these applications. The attachment of
this King to his deceased sister, and at present to his niece, the
Queen of Portugal, will prevent any violent measures being taken by
our ally or Spain, to force that nation to adopt other measures. The
republican party in Holland are in good spirits. Zealand has dropped
the opposition it made to hostile measures, so that at present there
is an unanimity in the States on that interesting point.