Since my letter of the 17th ult. to the Committee of Foreign Affairs,

I have had the pleasure to hear of your appointment to the office of

Secretary for that department, and although I have not any official

directions, respecting my future correspondence, in consequence of

this change, I take the liberty of addressing you as I have hitherto

done the Committee, on the subject of our affairs here, their

situation, and that of the powers with whom we have, or may hereafter

have, connexions. At the same time permit me to entreat you, Sir, to

inform me, whether it is judged necessary, that I should continue this

correspondence, having done it hitherto with a view to multiply the

channels of information to Congress, and not from an expectation of

conveying any material intelligence, which they will not ultimately

receive in a fuller manner from Mr Jay and their other Ministers; to

the former of whom I communicate instantly every information I can

procure here, or by my foreign correspondence. I have been induced to

continue this correspondence, from another motive, which is, that I

find that others employed as secretaries here, are directed by their

respective Courts, to write either to the Minister for Foreign

Affairs, or the particular Secretary of their Sovereigns. The only

letter, which I have had the honor to receive from Mr Lovell, since I

have been in this country, approved of my endeavors to communicate

early and regular information; but if it is expected I should do it

effectually, I hope a cypher will be sent me, by the first safe

conveyance, under cover to Mr Harrison at Cadiz, or to our Consul in

France, with directions to those gentlemen to forward the letter

enclosing it, by a sure hand, to escape the inspection of the

post-offices in France and Spain, the dread of which often retards my

letters, which I am now obliged to send to the sea-ports, by private

persons, or the couriers of the French Ambassador. Once possessed of a

cypher, I flatter myself that few vessels will sail from France or

this country without letters from me, which, although often not

interesting, may yet in some degree contribute to the satisfaction of

Congress.

Our affairs are in much the same situation they were when I had the

honor to forward the above mentioned letter to the Committee. M. Del

Campo's sickness, from which he is but just recovered, is the occasion

or pretext for this delay. His appointment, however, has been finally

announced to Mr Jay by the Minister, and was made at the time

mentioned in my former letters. It is probable that little will be

done in this business, until the Court goes to the Pardo the 7th of

next month. A principle of delicacy perhaps prevents it from seeming

at present to precipitate its conduct, in consequence of the favorable

aspect of our affairs, since the news of the capture of Lord

Cornwallis, and the victory obtained by General Greene in South

Carolina. But the delay attending the transaction of the smallest

affair in this country, is a sufficient reason to account for the

difficulties Mr Jay encounters at present, without surmising other

motives. On this subject, I speak from the experience of almost all

the _corps diplomatique_, as well as from the authority of

individuals, who have much business with the various branches of

administration.

The news above mentioned, was received apparently with great pleasure

by the King and Prince of Asturias, as I was informed the same day by

several of their officers in waiting. The public at large was highly

satisfied, and has spoken more favorably since of our allies, than it

has done from the commencement of the war. The foreign Ministers were

not all so well pleased with this event, particularly those of

Germany, Russia and Denmark. However, in general they regard it as a

blow which decides the Independence of the States. The new Minister of

Sweden is open in declaring his partiality for our cause, and

signified that he would have waited on Mr Jay on his arrival here, as

it is the custom of those last come to do, if no other Minister had

arrived here since Mr Jay's residence, who had not done it. His

conduct to myself shows that this was not a mere compliment, for he

has invited me several times to dine with him, and visited me. He is a

particular friend, I believe, of M. Marbois, for he speaks highly of

him, as indeed all do, whom I have conversed with, that have the

pleasure of his acquaintance.

The Imperial and Swedish Ministers declare that their respective

Sovereigns will reclaim all vessels under their colors, going to or

returning from America, which comply with the articles of the armed

neutrality, and it has been hinted to me, that it was not difficult to

obtain letters of naturalization for the crews of American vessels,

provided the nominal officers are subjects of either country. The

Court has at length consented to repay the money advanced in April

last by the Marquis de Yranda, but has not enabled Mr Jay to pay the

bills due this month, and as Dr Franklin has not authorised him to

draw, M. Cabarrus, as I expected in my last, has consented to advance

the sum sufficient for this purpose, amounting to thirtytwo thousand

dollars. Perhaps Dr Franklin may soon enable Mr Jay to repay him.

Thirty thousand pounds sterling would pay all our debts here, which

distress us more than the apprehension of not receiving our salaries,

of which, though liberal, we have constant need, owing to the dearness

of everything in this country, and the great expense incurred by the

frequent change of residence of the Court, which circumstance obliges

us to take lodgings at the royal residences; and which expense, the

frequent journeys that we were constrained to make on account of our

other business in Madrid, greatly augment. I should not touch on this

subject, if Dr Franklin had not desired me to mention to Congress our

personal difficulties and distresses, for I believe, with all the

desire he has to serve us, he procures with difficulty sufficient

funds for the payment of our salaries.

The expeditions mentioned in my former letters, are now both probably

at sea; that from France sailed the 10th instant, and I know of a

certainty, that orders have been sent to Cadiz to hasten the departure

of the ships and troops at that post. The French ships there,

mentioned in my last, take on board a million of dollars, and M. de

Bussy, who formerly signalized himself in the East Indies, has gone

thither incognito by land, accompanied by several officers, who have

but lately returned from the East. It is therefore highly probable,

that these vessels, joined by others, go thither, and will take under

their escort a part of the troops embarked at Brest.

No great progress is made in the sieges of Gibraltar and Mahon; on the

27th ult., the enemy made a sally from the former place, in which they

did more damage, than has been published here, having completely

ruined the advanced works of the besiegers, the repair of which will

require some time and much money. At Mahon, the rainy season has

retarded the operation of the assailants. I am just told the Duc de

Crillon demands a reinforcement of two thousand men, which will be

granted to him. The enemy receives small succors from time to time by

sea. The Court is about to negotiate another loan, in which if it does

not succeed, perhaps it must have recourse to another emission of

paper. The treasury is at a low ebb. The Minister of Marine demanded

lately ten millions of reals, and received but three. The credit of

the paper has lately risen, it is not negotiated at one and a half per

cent loss.

A plan for a national bank, is at present before the Council. The

projector, M. Cabarrus, proposes to form a capital of fifteen millions

of dollars, of which he offers to procure six millions; each action to

amount to two thousand reals, for which the proprietors receive a

certain interest of four per cent, with the profits expected from this

establishment; I have seen the plan, but had not permission to copy

it, so that I can give but a faint sketch of it. Eight directors are

to be chosen the first year, and six annually, by the assembly of the

proprietors; two of these directors are to be perpetual, because it is

proposed, that they should have the direction of the supplies for the

army and navy, with an interest of ten per cent, to the emolument of

the bank; these two directors are to be named by the Court, out of

four chosen by the proprietors; in other respects the Court to have no

influence. If this plan, which was originally a part of the scheme for

the circulation of paper here, should succeed, the paper which will be

discounted by it, will probably preserve its credit. The Gromios,

companies possessed of exclusive privileges, will be annihilated, and

much money, now dormant in the coffers of individuals, be called into

circulation. The Gromios pay two and a half per cent interest, and the

bank four, which difference, joined to the hopes of farther profits,

will tempt the money-holders to withdraw their funds from the hands of

the first, and place them in the latter. But these companies and their

friends, oppose it strongly, as do also the persons employed in

supplying the army and navy, with whom, it is said, people in various

departments of Government have interested connexions.

The Courts of France and Spain seem determined to continue the war

with vigor, and you will see by the King of Great Britain's speech,

that he is not disposed to accommodation. The Empress of Russia still

continues her endeavors to bring about a peace between England and

Holland, to which the British Ministry has lately appeared to listen,

although in a haughty manner. I am told the republican party is more

exasperated than ever, by their answer to Russia, which is published.

But your information will be much more accurate from Mr Adams, than

any that I can procure. My correspondents from France write me, that

the nation is much elated by the late triumph of the allied arms. This

success, and the flourishing state of their commerce, reconcile them

to the war, the continuance of which their Ambassador here regards as

inevitable.

The resolution of Congress, prohibiting all intercourse between the

citizens of America and the subjects of Great Britain, gives a secret

satisfaction both in France and this country, and augments the

jealousy of others, that the influence of France will exclude at the

peace all amicable connexions between the States and Great Britain,

at least this is the language of several of the foreign Ministers and

their families. The Imperial Ambassador has lately made

representations on account of an ordinance rigorously executed of late

in the ports, obliging all captains of vessels to make an oath,

declaratory of the contents of all packages, &c. &c. on board their

vessels. He has endeavored to make this a common cause. The commerce

murmurs against this, and other regulations lately enforced. It must

be confessed, that Spain seems desirous to discourage all commerce

carried on by foreigners, and bears as hard on their allies as on

neutral nations. Whenever a peace takes place, France will be

constrained to make a new convention on this subject. At present, this

Court feels its importance, and the cabinet of Versailles has points

of a nature so much more interesting to carry, that it takes little

notice of the breach of conventions actually subsisting. By a late

ordinance of the Minister of Finance, a duty of twentyfive per cent

was imposed upon all produce brought in American vessels from the

Havana. Mr Jay has made representations on this subject, which, I

hope, will be attended to. M. Galvez appeared well disposed to

withdraw them. It appears also to be the intention of the present

Minister, to diminish the consumption of salt fish, to pave the way,

as their friends give out, for its total exclusion at the peace,

unless cured and imported by the natives; for this purpose, they have

obtained bills of indulgence from the Pope, permitting the use of meat

during Lent, and on other days on which it was prohibited. The price

of these indulgences is proportioned to the rank of the purchaser. It

is calculated, that the sale of them in the Spanish dominions will

produce two millions of dollars annually; so that a double advantage

is derived from this operation, the extraction of money for fish is

prevented, and the revenue considerably augmented.

The present Ministry seem firmly established in their respective

posts. The Count de Florida Blanca's health does not permit him to

give constant application to business, but is not of so dangerous a

nature as to cause any apprehension. The Ministers of the Indies and

Marine keep their ground in the King's favor, although they have many

enemies. If the disturbances in America should increase, the credit of

the first may be weakened. The latter, although disliked by his

colleagues and disapproved by France, preserves the Sovereign's good

graces. He has one merit, which is his constant attention to the

safety of the Spanish fleet, a merit that may fix him in his place,

but which renders him odious to the nation and its allies, who wish to

see it more actively employed.

I am afraid these particulars may appear trivial to Congress, to whom

I should be happy to make more important communications; these are not

to be obtained but by the dint of money, or by a long residence and

intimacy with persons in the various departments of government. The

first we have not for the most pressing exigencies, and the latter,

our at present doubtful situation at this Court precludes us from in

some degree; although neither attentions nor endeavors have been

omitted to make useful acquaintances.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

* * * * *

TO ROBERT R. LIVINGSTON.

Madrid, December 24th, 1781.

Sir,

Yesterday Mr Jay had an audience of his Excellency, the Count de

Florida Blanca, in which that Minister in the most express terms

assured him, he might depend on receiving three millions of reals to

pay such bills as he had already accepted, this sum, with near

eighteen thousand dollars received already, and twentyfive thousand

promised by the Court of France, will fully answer this purpose, and I

still hope ways and means will be found to furnish funds for the

bills, which have not yet been presented, and which, for some weeks,

come to hand slowly. The Minister also promised his good offices with

the Court of Portugal, and informed Mr Jay, that previous to his

application, he had endeavored to induce the Ministry of that nation

to conduct itself with respect to the States, in a manner more

agreeable to the rights of humanity and the law of nations founded on

those rights, but that the party in favor of Great Britain

preponderated hitherto.

I have had opportunities of speaking several times on this subject to

the Secretary of the Embassy of Portugal here, and once to the

Ambassador. Each seemed sensible of the injustice of the first step of

the Court, and owned it more easy to do an injury than to repair it.

If the Congress should be in a situation to make strong

representations to that Court, with a recapitulation of the conduct of

the States during the whole war in respect to Portugal, they may be

possibly attended with success, particularly if they should accede to

the armed neutrality, to which they are strongly pressed by Russia at

present. The Minister also engaged to do justice to certain Americans

who carried a British privateer to the Canaries, and, in short, seemed

exceedingly well disposed to render the States every service in his

power. I cannot forbear, however, mentioning to the Committee, that he

spoke with much chagrin of the adherence of Congress to points, which,

in his opinion, rendered a treaty impracticable for the present, and

although pressed on that subject by Mr Jay, I doubt whether he will

give his sentiments thereon in writing. He also seemed exceedingly

apprehensive of the efficacy of the means employed by Sir H. Clinton,

to sow jealousy and discord among the States, and even in Congress,

and said that the letters lately received by the British Court from

the officer abovementioned, gave great hopes of success in this

particular. In fine, he assured Mr Jay, that considerable sums of

money would be employed for this purpose, and as I am convinced this

Court received its information from a person equally employed by that

of London, I fear it will be difficult to remove these suspicions

until time shows how ill founded they are.

In the meantime, unanimity and force in America are the best arms of

the States there, and their best arguments in Europe. To which, if

much complaisance to the Spanish King and nation is added, even in

objects not essential, the Congress will enable their servants to

defeat the designs of the British emissary and their party here, so

long as the present King lives. According to present appearances, the

war is likely to continue. Although I have already written you

particularly on the subject, I now repeat, that the Court is in the

way of negotiating its loans for the expenses of the ensuing year, and

that it expects some treasure from America. At Cadiz, they have

twentynine sail of the line ready for sea. The blockade of Gibraltar

is continued with tolerable success hitherto. The Count d'Estaing was

not arrived in France by the last advices. This delay will retard the

operations intended for our succor.

The death of the Empress Queen will probably kindle the flame of war

in Europe, though perhaps not in the ensuing year. I am told from good

authority the Emperor is favorably disposed to England. His Ambassador

and Mr Cumberland are very intimate, and see each other every day. The

residence here of the latter is extraordinary in the present situation

of the two nations, and can only be accounted for on the principles,

which I had the honor to mention in former letters. If I may be

allowed to conjecture, I think Holland will be sooner or later

involved in the war, and that orders have already been given by the

Court of England to attack their possessions in the East Indies. This

however is but a conjecture, although grounded on some share of

political evidence.

The British Parliament is prorogued to the 23d of January. Their grand

fleet is at sea. Mr Trumbull has been arrested in England, and several

Americans obliged to fly and abscond, among whom there is one of my

correspondents. I have received advice, that several were included in

the number to be arrested, whom it was not the intention of Government

to seize, in order to give them an opportunity of returning to America

with more eclat, to be in a situation of rendering greater services to

Great Britain. I hope this advice is without foundation, but having

received it, I think it my duty to communicate it, because

circumspection can do us no material injury. M. Gardoqui will

scarcely take his departure until all negotiations are at an end, and

the campaign shall have commenced.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

_P. S._ Sir Joseph Yorke has presented another Memorial to the States,

more insolent than the former. The armed neutrality propose to have

forty sail of the line next spring in the ports of Holland.

W. C.

* * * * *

TO ROBERT R. LIVINGSTON.

Madrid, February 18th, 1782.

Sir,

I have just had the pleasure of receiving your letter of the 20th of

December, and seize the earliest opportunity of acknowledging the

satisfaction I feel in the hope of a more regular correspondence than

I have hitherto had with your department. The moment I was informed,

indirectly of your appointment, I did myself the honor of addressing

you. My first letter was dated the same day you wrote the one above

mentioned. On the 24th ultimo, I again solicited your attention, and

as I sent quadruplicates of these letters, I think I may venture to

refer you to their contents, for accounts of the state of affairs, and

the general intelligence at the time of writing them.

I find by your letter, that mine written in the month of September,

had not reached Congress. I sent three copies via Bilboa, by the

Captains Tracy, Cook, and another, whose name my correspondents

omitted to mention to me. I have had the mortification to hear

lately, that these vessels were all taken on the coasts of America.

The fourth copy was sent from France, so that I still hope it may have

escaped the misfortune of the others. Nothing gives me, or can give

me, more pleasure, than the idea of contributing to the satisfaction

of Congress, while I fill a duty, which a sense of their confidence,

and a desire of meriting a continuance of it imposes on me. I am only

sorry, that my abilities and opportunities do not correspond with my

wishes, to render my communications more useful. I have already

requested you in the letters above mentioned, to point out the line of

my duty.

I am infinitely obliged to you for what you mention with respect to my

apprehension of being sent to Corunna, and having your sanction to

direct my conduct in future. I shall implicitly follow Mr Jay's

directions, should he even choose to send me as a courier to be the

bearer of despatches to the sea-ports. The reason assigned in your

letter, joined to others which I had the honor to mention in mine to

the Committee, were such as I suggested when I expressed a reluctance

to be employed with discretionary powers in this business. I was

prepared however to execute Mr Jay's orders, but I believe ulterior

reflections, and the advice of the French Ambassador, induced him to

relinquish the idea of sending me.

I have no cypher from Mr Morris and have seen none from him. I must

therefore again request you to forward me one, under cover to Messrs

Barclay and Harrison, with directions to those gentlemen to forward

your letters by private hands, and not by the post, for I fear that

one you sent to Mr Jay has been intercepted. No delicacy is preserved

by this Court on this head. This practice is not confined to us, but

extends to the correspondence of all the _corps diplomatique_. It has

happened, that in the hurry of resealing letters thus examined, papers

belonging to the department, in which they were opened, have been

carelessly enclosed by the Secretary, and returned to the Minister by

the person to whom the letters were addressed. Without a cypher it

will be impossible for me to be so punctual as may be expected, for at

present I am obliged to send most of my letters by private hands, or

by the French Ambassador's couriers to the sea-ports, which

circumstance often retards their arrival in America.

Our situation with respect to money matters is still critical. The

drafts which Dr Franklin is obliged to pay are so frequent, that he

has not been able to obtain cash to enable Mr Jay to discharge the

bills accepted by him here, for which M. Cabarrus, as has been

mentioned in former letters, is nearly forty thousand dollars in

advance. Happily there are few bills due until the middle of next

month, which will give Dr Franklin time to endeavor to save our credit

here, and to this Ministry to reflect on the consequence of denying us

this small succor. The Count de Florida Blanca has been lately

solicited on this subject by the French Ambassador, and without giving

hopes of affording the sum demanded, he promised to do what the

urgency of their own wants permit him to do for us. In this

conversation he appeared dissatisfied, that Congress had taken no

notice of the desire he had expressed of obtaining one of the vessels

constructing in the Eastern ports, for the United States, and

complained, that no returns had been made by the States to the proofs

the King had manifested, of his favorable disposition towards them. In

fact their own necessities are evident.

In addition to what I have heretofore mentioned on this head, I have

lately been informed from good authority, that a person to whom the

Crown is indebted twelve millions of reals, in order to obtain

payment, has been constrained to propose to purchase the salt

belonging to his Majesty, to the amount of twentyfour millions of

reals, for the payment of which, after deducting the sum due to him,

he is obliged to advance immediately five millions of reals, although

he has little hopes of disembarrassing himself shortly, of such an

immense quantity of an article, for which there is little demand at

present. The Minister, to soften the harshness of his refusal to make

further advances, informed the Count de Montmorin, that M. Del Campo's

instructions would be ready in a few days, and that Mr Jay might then

commence his conferences on the subject of the proposed treaty. If I

may be allowed to hazard a conjecture again on this subject, I must

repeat what I have often mentioned already, that Spain seems desirous

to retard this business until a general treaty takes place. Perhaps it

may not be unworthy the attention of Congress, to prepare eventual

resolutions should this prove to be the intentions of the Court.

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