The rumors of a general negotiation subside, owing it is said to the

obstinacy of Great Britain, and the demands of this Court. The

Imperial Minister has just received a courier from his Court, charged

with its excuses for the detention of a Spanish courier, who after

delivering his despatches to the Spanish Ambassador at Vienna, on his

journey from thence to Petersburg, was stopped in Hungary, and not

permitted to proceed until released by order of the Imperial Court.

The Imperial Minister named to the Court of Berlin from hence, will

soon go thither; his nomination is still a secret. The Spanish

squadron has returned to Cadiz. Major Franks will leave this next

week. I must do this officer the justice to observe to the Committee,

that he has conducted himself with great discretion and economy here,

and I hope that Congress will be induced by the success and expedition

with which he delivered their despatches to Mr Jay, to send in future

such as are important in a similar way.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

FOOTNOTES:

[10] Missing.

* * * * *

TO THE COMMITTEE OF FOREIGN AFFAIRS.

Madrid, October 5th, 1781.

Gentlemen,

On my arrival here from St Ildefonso this day, I found the enclosed

letters for his Excellency, the President of Congress, from M. Dumas.

On the 14th and 28th ult. I wrote to the Committee, that the Court

appeared more serious in its intentions of bringing on the negotiation

than it had shown itself to be for a long time. In my last, I informed

the Committee that M. Del Campo would, probably, be appointed to

negotiate with Mr Jay, and that his instructions and nomination would

have his Majesty's approbation on the night of the 30th ult. The

Minister of State once proposed to intrust M. Gardoqui with this

business. Yesterday, when I left the _Sitio_, the Court had not

formally notified the appointment to Mr Jay, but from some hints I

received from well informed persons, I have hopes that the

communication will be made either before he comes from thence

tomorrow, or directly after the Court is fixed at the Escurial. I

shall, however, be very agreeably disappointed, if much progress is

made in this affair until the fate of the campaign is known.

The last post from France and Holland brought no news of an

interesting nature. The French and Spanish troops, destined to

reinforce the Duc de Crillon's army at Minorca, are not yet embarked,

and he cannot act with effect until he receives reinforcements. It is

said the desertion from the place is considerable. The South Carolina

frigate, armed for that State in Holland, has put into Corunna, and I

am concerned to find by letters from Messrs Searle and Trumbull,

passengers on board, that Commodore Gillon's conduct is much

censured. Knowing Mr Searle's zeal and solicitude for the public

interest, I must own that his letter has influenced my opinion in a

great degree, but it would be unjust to condemn the former, before

having seen an exposition of the reasons, which have determined his

conduct, and which he has promised to forward to Mr Jay by express.

The fact is, he sailed from the Texel without the ships he had engaged

to escort, that he has cruised six or seven weeks with little success,

and that he has been obliged to put into the port abovementioned, to

refit and get a supply of provisions, which he writes he shall do

immediately. It is probable Mr Jay may think proper to send me to

Corunna in this business, which commission, I must confess, I shall

accept with reluctance, because I not only foresee the delay and

expense that must inevitably have place, if this government is obliged

to interfere, but the disgrace, which must ensue from the notoriety of

these unhappy differences between the commander and the American

gentlemen aboard. I have another motive, which arises from the nature

of the employment with which Congress has honored me, and which, with

submission, I conceive does not admit of my absence at the most

important period of the negotiation, when most knowledge is to be

acquired of the real dispositions and intentions of this Court, and

when I may avail myself of the esteem and confidence with which the

proposed negotiator has appeared to honor me for several months past.

Although, for the reasons abovementioned, and for others which I could

add, I may leave the Court at this crisis with reluctance, I shall, if

directed, proceed to Corunna, and execute the trust reposed in me,

with a zeal, assiduity, and activity, which, I hope, will always

influence my conduct, when the public interest and reputation are in

question.

I enclose a letter for his Excellency, the Chevalier de la Luzerne

from the Count de Montmorin, whose talents and warm espousal of our

interests, not only here, but at his own Court, entitle him to the

approbation and esteem of Congress. I just hear that the Court has

received advices from Buenos Ayres, dated the 7th of July. These are

very agreeable. The rebellion mentioned in my former letters is

entirely quelled, by the defeat and capture of the Indian chief at the

head of it, and his principal officers, cannon, treasure, &c. &c. It

seems two English officers are in the number of the prisoners, and

that many letters and papers were found, which discover that the

Portuguese excited and fomented these disturbances.[11]

The Havana fleet is expected daily. On its arrival, perhaps, the Court

may do something for us. But I repeat again, that little is to be

depended on in the money way. Letters from France talk of a large

expedition preparing at Brest. Its object is a secret. I shall seize

every opportunity of informing the Committee of what passes in Europe

relative to our affairs, and, in future, will multiply the copies of

my letters to ensure their safe arrival.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

FOOTNOTES:

[11] This alludes to the revolt of the celebrated Peruvian Chief,

Tupac Amaru, of which an eloquent account is given by Dean Funes, in

his _Ensayo de la Historia Civil del Paraguay, Buenos Ayres y

Tucuman_. See North American Review, Vol. XX. p. 283.

* * * * *

TO THE COMMITTEE OF FOREIGN AFFAIRS.

Madrid, November 17th, 1781.

Gentlemen,

On the 2d instant the pretended Ex-Jesuit, who made so much noise in

the English papers last winter and spring, was arrested at the

Escurial, where he arrived the day before from Lisbon, under an

assumed name. Commodore Johnson sent him to Rio Janeiro, in order to

pass from thence to the Spanish settlements in Peru. He pretended to

the Portuguese Governor, that he had been taken by Johnson on his way

to the Caracas, but the former from some suspicion arising from the

man's appearance and story, refused him permission to pass into the

country, which obliged him to embark for Lisbon, at which place under

his borrowed name he addressed Don Ferdinand Nunes, the Spanish

Ambassador, offering to make some important discoveries to the Count

de Florida Blanca. The former advised the Minister of these offers,

and was directed by him to furnish the person in question with cash

for his journey. It is said, that he was recognized the very day of

his arrival at the Escurial, by one who knew him at Buenos Ayres. It

is more probable, that M. Nunes knew his real character previous to

his departure from Lisbon, for the magistrate whom the Minister of the

Indies employs on such occasions, went to the Escurial with his

officers, the day he arrived there, and arrested him the same evening.

He is now in close prison, and I am told has discovered all he knew

relative to the designs of the English, to foment the spirit of revolt

existing in that country. This affair furnished conversation to the

Court the few days I resided at the Escurial, whither I went, at the

instance of the French Ambassador, to Mr Jay to be present at the

_Besa Manos_, on St Carlos's day.

I found by conversation with M. Del Campo, First Under Secretary of

Foreign Affairs, that nothing had been done by the Court to advance

the conferences for a treaty since it left St Ildefonso. In my letter

of the 5th of October, I mentioned, that the gentleman abovenamed was

nominated by the King to treat with Mr Jay; this nomination has never

been formally communicated, but I had my information from such a

quarter, that I am convinced the appointment was made, and the

instructions given near about the time mentioned in my letter.

Multiplicity of business, and the confusion occasioned by the Court's

removal from one royal residence to another, are the present pretexts

for this delay. The aspect of our affairs at the close of the

campaign, the fate of which is yet unknown, and the apprehension of

being obliged to make large advances in consequence of cementing their

connexion with the States, are perhaps the real causes; to which may

be added others of a different nature, though not less important to

Ministers and courtiers.

The palace is filled with Irish attendants, of both sexes, whose

animosity to us and our cause is as decided and inveterate as is their

attachment to it in America. The Princess of Asturias has on several

occasions, and lately in particular, treated such English as come here

with much condescension and distinction. The last instance I allude to

happened to lady Winchelson, and the Lord her son, who came from

America, (where he commanded a regiment) to Lisbon for his health.

They were accompanied by a Mr Graham and his lady, and sister, both

sisters of Lady Stormont, and visited the Escurial in their way to

France.

If the Ministers perceive any aversion in their future King and Queen

to an alliance with us, they can easily find pretexts to retard it

until they see their own justification in the urgency of the

conjuncture, that may appear to have forced them into the measure.

This however is but conjecture founded on the knowledge of some little

incidents in the interior of the palace, and strengthened by the

conduct of the Ministry, not only in the great object of Mr Jay's

mission, but also in several minute particulars in which they might

act to our satisfaction, without showing any marked partiality in our

favor. So far from Mr Jay's having been yet able to obtain further

succors, the French Ambassador has not procured the payment of moneys

advanced in the month of May, by the Marquis de Yranda, to enable Mr

Jay to discharge the bills due that month, although the Minister

engaged his word to the Ambassador to repay this sum in equal monthly

payments. In fact the Court itself is distressed, and with difficulty

finds means to answer its own engagements.

I believe I may venture to write with some certainty on this subject,

for I have been on an intimate footing with the person who has

transacted for the Court the most part of its money negotiations for

more than twelve months past. I knew and cultivated him before he was

in favor, and my introduction of him to Mr Jay, procured him the

commission on the payment of our bills, and a considerable credit in

consequence of the sums supposed to pass through his hands monthly for

this purpose. As he has been the founder of the paper system in this

country, and as he is likely soon to establish a national bank, he

will probably make some figure in the annals of this reign. His name

is Francis Cabarrus, born in Bayonne, but sent early to Spain to

acquire a knowledge in its commerce, in which his father was

considerably interested. His marriage at the age of nineteen (he is

now twentynine) displeased his family, from whom after that period he

received no assistance. With a small capital, as he himself informed

me, he came and established a soap-work in the neighborhood of this

city. While there he introduced himself to the notice of the Count de

Campomanes, by becoming a member of the patriotic society, the friends

of their country; of which the last mentioned gentleman is in a great

measure the founder. He soon conciliated his esteem, as well as that

of the Governor of the Council of Castile, to whom he became known by

means of his friend and patron M. Campomanes. Through their interest

he procured a contract to supply wheat and flour, in a time of

scarcity, and commenced banker. The last year he proposed his plan for

procuring cash for government, on terms mentioned in former letters.

His genius is brilliant, active, and enterprising, with more

imagination than solidity, although he is by no means deficient in

acquired knowledge, arising from reading and reflection, the result of

experience. His eloquence, enforced by a very prepossessing

countenance and figure, seizes the heart before it convinces the

judgment, and this joined to his knowledge of commercial and money

transactions, has obtained for him the confidence of M. Musquiz, who

consults him at present in all affairs of finance.

I have thought proper to say thus much of this gentleman, not only on

account of the part he has had, and is like to have in money matters,

but because he has on all occasions manifested himself a friend to

our cause, of which he is an enthusiastic advocate, being totally

divested of local prejudices. He offered to procure five hundred

thousand dollars for the States, payable at Havana on condition of

being reimbursed by government in two years, the payments to commence

at the expiration of two months after his orders for the delivery of

the money to the agents of Congress were despatched. He will make the

advances for the payment of the bills due next month, which amount to

thirtytwo thousand dollars, and for the reimbursement of which Mr Jay

relies on Dr Franklin, for after the delays we have experienced here,

and the knowledge of their own distresses, there is no great reason to

think this Court will grant us any considerable pecuniary assistance,

unless a happy change in the situation of our affairs should

precipitate a treaty, and lead them to extraordinary exertions, as

proofs of their amity. The support of their fleet at Cadiz, of forty

sail of the line, the sieges of Gibraltar and Mahon; their expensive

armaments at the Havana, and the preparations making for an expedition

from Europe to that quarter, which will sail next month, exhaust their

European and American revenue, and all the resources by which they

have hitherto obtained money.

The insurrections in Peru augment this expense, and the same spirit of

revolt, which seems to have extended to Mexico, will add to it. These

discontents have been occasioned by duties imposed since the

administration of M. Galvez, the present Minister of the Indies. The

project was proposed by Carrasco, Marquis de la Corona, to the Marquis

of Squillace then Minister, who was much inclined to adopt it, and

named the projector to visit Spanish America, in order to form on the

spot the plan of its execution. He declined the mission on various

pretexts, and another was appointed for this purpose, who died on his

passage. M. Galvez, the present Minister of the Indies, succeeded him,

and on his return to Spain made a report so agreeable to his Majesty,

that it procured him the important post he now occupies.

The novelty of these measures, joined to the vexations and impositions

occasioned, as is said, by the collectors of them, has created much

dissatisfaction in these countries. I have my information from some of

the principal natives of Mexico and Peru here, and also from a

foreigner, who obtained permission to visit Mexico, and who made the

voyage from motives of curiosity. Four thousand troops are to be

embarked at Cadiz for the expedition abovementioned, and it is said

will be escorted by four vessels of the line, who at the same time

convoy the register ships bound to the Havana and Vera Cruz. As this

convoy will sail about the same time that the expedition from Brest

will be ready for sea, it is probable they may form a junction. Ten

thousand troops are to be employed in the one last mentioned, and I am

told will sail escorted by twenty sail of the line. Part of which will

probably join the grand fleet at Cadiz, and the rest proceed to the

West Indies, where I have reason to think they will act in concert

with the Spaniards. A friend of mine is to embark on board the French

fleet as interpreter. He speaks and writes the Spanish language

perfectly.

I have also some reason to believe that the French naval force, and a

larger body of troops than they have yet sent to America, will appear

on our coasts earlier the next, than they did the present year.

Jamaica is thought to be the first object of these expeditions, and

this conjecture arises from the appointment of M. Galvez to the

command of the Spanish force in the West Indies, whose project for

attacking that Island is well known. In France, it is said that a part

of the troops to be embarked at Brest, is intended for the East

Indies; and here, that theirs are sent to suppress the revolt at Santa

Fe, mentioned in my letter of the 17th ult.[12] I rather think that

two French ships of the line, now at Cadiz, and as many frigates, who

have taken and are taking in provisions for a long voyage, are

destined to the eastern part of the world, and that they will take

with them a considerable sum in dollars, for the payment of their land

and sea forces there. The French Ambassador has obtained, or is about

to obtain, permission to send out of the kingdom two and a half

million of dollars, part of which sum is probably destined to the

purpose above mentioned.

The sieges of Gibraltar and Mahon go on slowly. The operations against

these fortresses have not been so vigorous hitherto as to promise a

speedy reduction of either; when the efforts of these besiegers become

more interesting, I shall transmit regular accounts of their progress.

The Court of Great Britain proposes to send five hundred troops to

America, exclusive of recruits, to be drawn from Germany and Ireland.

These it is said, will sail with thirteen sail of the line in the

course of next month. The East India Company also send a reinforcement

of seven thousand men to the East Indies, with four sail of the line.

If this information can be credited, the East and West India, and

American reinforcements will sail at the same time, to insure by their

united force their safety on the coast of Europe.

In Holland the divisions are still great, and likely to be so. The

Provinces have not yet all agreed to the loan proposed by France for

the use of Congress. I am informed the Stadtholder's friends give it

all the opposition in their power. That Prince has, as I have already

advised the Committee, been obliged to consent to the augmentation of

the marine. The news of the birth of the Dauphin will probably reach

America before this letter. It is expected it will be received there

with demonstrations of satisfaction that will be highly flattering to

the French nation. The great age and infirmities of the Count de

Maurepas, render it probable that he will not survive the winter. The

Queen's influence, it is thought, will increase by the birth of the

Dauphin, and the death of this Minister. Permit me to conclude with

the flattering hopes of a brilliant close of the campaign, which the

well concerted plan of our General and allies communicated to me by

the Count de Montmorin, renders highly probable. The success of this

operation, and what is expected, may perhaps render Mr Jay's next

information more agreeable and interesting to Congress, to whom I beg

leave to present my humble respects.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

FOOTNOTES:

[12] Missing.

* * * * *

ROBERT R. LIVINGSTON TO WILLIAM CARMICHAEL.

Philadelphia, December 20th, 1781.

Dear Sir,

Your letters of the 16th of August, and 5th of October, came to hand.

They were read in Congress, and handed over to this office, which will

in future, agreeably to its institution, receive and make all

communications to and from Congress, conformable to their ordinance,

of which I enclose a copy, having omitted it in my letters to Mr Jay.

The importance of early and regular intelligence from Europe is so

much felt here, that you have full credit for all the communications

you make. I wish you would extend them so far as to permit no vessel

to sail without letters and papers. Spanish gazettes may sometimes be

serviceable to us.

The expedition of the Duc de Crillon is important in many views;

should it succeed, it will be such a blow to the British as must

hasten a negotiation, though it may probably obstruct a peace; at any

rate, the possession of the Island must cut the sinews of their

Mediterranean trade. Your apprehensions about being sent to Corunna,

will, I hope, have been groundless, as Captain Gillon's ship is not

the property of, or under the direction of the United States. So far

as Mr Jay's good offices can be serviceable, they undoubtedly will be

extended. He will not think himself obliged to involve the United

States in the expense or disgrace of Captain Gillon's misconduct, if,

as is alleged, he has really behaved improperly. Should he determine

to interfere, Congress make no doubt but you will conform to his

intentions; and they rely upon your zeal and activity in the discharge

of such trusts, as he may think proper, since he alone can judge of

the best application of them, and will not deprive himself of the

advantages, which your assistance and information may afford, without

being determined by weighty and important considerations.

It gives great pleasure here, to hear of the step that Spain is

taking, for opening a treaty with us. The delays in that business

begin to be resented by the people of this country, the more

forcibly, as they felt a high degree of respect for the Court, and

much attachment to the people of Spain, in return for the good offices

that they had done them. The great cause of the delay being now (as we

hear) removed, I doubt not that the candor of the negotiators, and the

clear views that they both have of the interest, which Spain and

America may mutually derive from an intimate union, will remove all

other difficulties to the wished for connexion.

We have no other news on this side the water, than that the enemy have

evacuated Wilmington. You, who know the spirit of disaffection which

prevailed in some parts of North Carolina, and the commerce which it

is capable of carrying on, particularly at this time, in articles for

the supply of the West India markets, will see the important sacrifice

the enemy have been obliged to make in thus quitting this post, and

abandoning the only friends in America, upon whose fidelity and

attachment they could rely.

I need not repeat to you, that I shall at all times think myself happy

in hearing from you, independent of the advantage that the public may

derive from your letters. They will be particularly agreeable to me,

as they may be made the means of increasing the number of friends,

which your zeal and attention has already procured you.

I am, Sir, with great esteem, &c.

ROBERT R. LIVINGSTON.

* * * * *

TO ROBERT R. LIVINGSTON.

Madrid, December 20th, 1781.

Sir,

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