I had the honor to address you on the 8th instant, since which we have

advice of the disastrous issue of the enterprise with the floating

batteries against Gibraltar, but although we have had notice of this

misfortune some days past, I have delayed writing until I could

procure authentic information of the particular circumstances of this

event. The enclosed copies of letters and papers, written or sent me

by a person in the General's family, will, I hope, prove more

satisfactory than any which you will receive from other quarters. The

projector, M. d'Arcon, is generally blamed. Enclosed you have a plan

of the attack as it was made, and as it was intended to have been

made, accompanied by a Memorial, which M. d'Arcon sent hither to

exonerate himself from part of the blame. I saw a letter he wrote an

hour after the affair, in which he avows he had deservedly forfeited

the confidence reposed in him by two Sovereigns.

This news dejected exceedingly the King, the Court, and the nation.

Their chagrin from the disappointment is, in some measure,

proportionate to their confidence of success. It is said, however,

that the King is determined to continue the siege, and, I believe,

that this will be the case. At present, an expedition in force to the

West Indies is in agitation. I am informed from a very good quarter,

that the command is offered to the Count d'Estaing. The party which

opposed him at Versailles, at the head of which is the Duchess de

Polignac, the Queen's favorite, the present Minister of Marine and the

former one, have made advances to him, and seem convinced that he

alone can repair the disasters of the present campaign. I hear that he

is unwilling to accept the command at this critical conjuncture, but

as he is the only French Admiral, who unites the suffrage of this

Court and nation in his favor, it is to be hoped he will comply with

the general wish of France and Spain. This affair is yet a secret.

From all accounts I have of the Spanish marine, I fear that Gibraltar

will be relieved. The expense of this siege has been enormous. I have

been assured, that during the present campaign it has cost thirtytwo

millions of piastres of fifteen reals each. This information comes

from one of the first clerks of the treasury. The great demand for

specie occasioned thereby has depreciated the paper money; it

fluctuates between twelve and sixteen per cent. To prevent its further

depreciation, the Court is endeavoring to procure gold from Portugal,

and negotiates, as I mentioned in former letters, a loan of three

millions of florins in Holland, to be augmented in case the

subscriptions fill readily. I am assured from thence, they do not, and

I am told here by a man in the secret, that the three millions will be

delivered in Spain in the month of December. Messrs Hope, the

negotiators of it, subscribe seven hundred and fifty thousand

florins.

As I have not had the honor to hear from Messrs Franklin and Jay

anything respecting the negotiations at Paris for peace, I can speak

only from indirect advice and my own conjectures. I have heard that

difficulties have been started respecting the powers of the British

Plenipotentiary to treat with our Commissioners. If this is true, it

will require some time to remove them. On the whole, it may be

supposed, that the negotiations will be spun out until the meeting of

Parliament, until the event of the expedition to relieve Gibraltar is

known; in fine, until the account of Lord Pigot's motions shall have

reached Europe, which may appear to give a favorable turn to the

British affairs in the West Indies. No expedition can sail from hence

in time to prevent the enemy from pushing their operations in that

quarter, if they proceed thither in force and with despatch. The Dutch

are like to do nothing this year; their affairs draw to a crisis, and

it is to be hoped, that it will prove favorable to our friends. The

Emperor is occupied in ecclesiastical and civil changes, his health is

in a precarious state, and he runs the risk of losing entirely his

sight. The motions of Russia indicate a war with the Porte no longer

Sublime. The Empress negotiates loans in Holland and at Genoa. I have

taken measures to be informed of their success. The King of Great

Britain, as Elector of Hanover, is recruiting in all the imperial

cities, and it is said, he is endeavoring to obtain an additional body

of German troops for the next campaign. The preparations for war are

as vigorous as ever.

I have not yet received an answer on the affair of the Lord Howe,

mentioned in my last. I visit the Ministers, and pass offices on this

subject and that of the duties, and shall omit nothing that depends

on me to obtain satisfaction, and I hope the pains I take will not

prove wholly ineffectual. Besides the affairs above mentioned, I am

obliged to visit and write to the Judges of the Council of the Indies,

on account of law-suits in which some of our countrymen are

interested, and which are before them by appeal from the inferior

jurisdictions. Even justice here is obtained by favor and

solicitation. In other respects, my situation is more agreeable than I

could have expected. I live on the best footing with almost the whole

_corps diplomatique_. The Ministers of Saxony and Prussia seem much

disposed to induce their Courts to open a direct commerce with

America, particularly if the war continues. For this purpose, they

have demanded and obtained from me, all the information in my power to

give them, with every motive that I could employ, to persuade their

respective Courts to engage heartily in this measure. If it is

adopted, the Maritime Company at Berlin, under the King's immediate

protection, and the Elector or his Ministers in the name of companies

of commerce, will be concerned in the first speculations. I do not

enter into details on this subject until I see whether these Courts

are serious in their intentions.

The advances and offers made me by the Minister of Sweden, have

rendered me less sanguine. He assures me it was insinuated to his

Sovereign by the French Minister, that it would be impolitic in him to

incur the ill will of England, by precipitating an acknowledgment of

our independence previous to its being acknowledged by the rest of

Europe. I wait with impatience for your instructions and information.

In the month of December, all our public accounts here will be

arranged, when I shall do myself the honor to transmit copies. I

cannot conclude, without mentioning that a Mr Littlepage, from

Virginia, has acquired reputation by his gallant conduct in the

expedition against Mahon, where he served as Aid-de-camp to the Duc de

Crillon, and since at Gibraltar, where he acted in the same capacity.

The Prince de Nassau, with whom he served as a volunteer on board his

floating battery, rendered public justice to his character at Court.

You will permit me also to mention Mr Harrison to you as one, who, by

his conduct, which has acquired him universal esteem, merits the

attention of Congress whenever it shall be judged proper to appoint a

consul at Cadiz, of which place he now performs the functions, with

great trouble and considerable expense.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

* * * * *

COUNT DE FLORIDA BLANCA TO WILLIAM CARMICHAEL.

Translation.

St Lorenzo, October 14th, 1782.

Sir,

The king has resolved that the English frigate, the Lord Howe, carried

into Cadiz by some Americans and part of the crew, shall be publicly

sold, ship and cargo, and the value of both be deposited, at the order

of Congress and yourself. I communicate this to you, that being

thoroughly informed, you may take such measures as you think proper,

and determine immediately what is to be done with the American and

English seamen on board the said vessel. I wish for occasions to

serve you, and that God may preserve you many years.

COUNT DE FLORIDA BLANCA.

* * * * *

TO ROBERT R. LIVINGSTON.

Madrid, October 29th, 1782.

Sir,

The state of uncertainly in which every one here has been for some

time, respecting the motions of the combined and British fleets, to

relieve, or prevent the relief of Gibraltar, joined to a general

embargo at Cadiz, and the want of other occasions, has prevented me

from doing myself the honor of addressing you since the 29th ultimo. I

hope you will be persuaded that my time has been devoted to no other

pursuits than those which my duty dictates. Enclosed I have the honor

to send a particular relation of the most interesting circumstances

which have passed in this interval. I have had occasion to compare

this intelligence with that of others, and particularly with letters

written by a marine officer in this service, but at the same time

employed to convey information to another Court, and I find upon the

whole my correspondent conforms with others in the most material

points, and enters into more minute details than those I have seen

from other quarters.

My letters of the 26th and 29th will have advised you of the steps I

have taken to obtain redress on affairs interesting to individuals,

and to our commerce in general. The enclosed copy of a letter from his

Excellency the Count de Florida Blanca, will show that my endeavors

have not been entirely ineffectual. The affair of the duties is still

under deliberation. As soon as Mr Harrison shall have disposed of the

Lord Howe, I shall address the Minister on the subject of the Dover

cutter; there can then be no pretence for detention or delay. I have

since my last received advice from Paris, but not from our

commissioners, that the difficulties with respect to the powers of the

British Plenipotentiary have been obviated, and that a separate agent

has been named to treat with us. But on this head you will have more

ample information than it is in my power to give you.

I am also informed, that M. Rayneval, brother to M. Gerard, has gone

to London. This circumstance renders the appearance of the negotiation

more serious. I am persuaded the greatest obstacles to a pacification

will come from this quarter. It is difficult to relinquish favorite

ideas, of which to attain the accomplishment, so much treasure has

hitherto been spent in vain. Perhaps it will be best for us that we

have not concluded a treaty here, which we have so long solicited.

The expedition mentioned in my last, is certainly resolved on. The

Count d'Estaing it is said will have the command, and will sail from

Cadiz with between forty and fifty sail of the line, and ten or twelve

thousand troops. The squadron at Brest is fitting for sea, and is to

consist of eight or ten sail of the line. It is conjectured it will

sail as soon as Lord Howe's return is known. If the junction is formed

in time, this formidable force, under the command of an officer

distinguished for his zeal and activity, may hasten the negotiations.

The answers to my letters to Holland, on the subject of the Russian

loan, and to those which I have procured others to write to Genoa on

the same point, inform me that it fills slowly. That of Spain for

three millions will be obtained. I have no doubt of the truth of my

information on this subject. In Portugal they pay dear for the gold

they obtain from thence. The depreciation is greater than ever, and to

prevent its further progress, is one of the most serious objects of

the attention of the Ministry. No changes since my last have taken

place in the general system of Europe, or in this Cabinet, except that

the Count de Florida Blanca has joined another department in the

Ministry to that which he before occupied, viz. that of Grace and

Justice, vacant by the death of M. Rode. Of course he will have more

to do than ever, and I shall be obliged to remind him more frequently

of our little affairs.

My situation with respect to American information is exceedingly

disagreeable. I hear of arrivals in France, and of letters being

received by our Ministers there, without any for me; I am persuaded

that the blame falls on European curiosity. I expect soon to have an

occasion of writing to you, when I shall do myself the honor to

transmit you any further particulars that may appear worthy of your

notice. I cannot help repeating that notwithstanding the appearance of

peace, the preparations for war are as vigorous as ever.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

* * * * *

ROBERT R. LIVINGSTON TO WILLIAM CARMICHAEL.

Philadelphia, November 28th, 1782.

Sir,

I have been favored with your letter of the 8th of July; those you

mention to have written on the 5th and 12th of March and the 2d of

July, never reached me. I regret that you had no directions from Mr

Jay to open his letters, as those you forwarded contained much

information that might have been useful to you, on which account I was

less particular than I should otherwise have been in mine to you.

The great business of the negotiation being transferred to Paris, you

will have more leisure to attend to the general politics of the Court

you are at, and to procure every species of intelligence, which may

serve to regulate our conduct here. We have yet had no information

except what you mention, of any new proffer of their mediation by the

Imperial Courts; it is an important object, and I wish you to throw

all the light you possibly can upon it; as we are particularly anxious

to know the substance of the answer, which you suppose to have been

given to it by Spain. You need never be under the least apprehensions

in vouching boldly for this country, that it will make no peace which

is inconsistent with its engagement to its allies. Perhaps this string

skilfully touched may lead nations who have hitherto kept aloof, to

form connexions which may bind us to them.

The enclosed resolutions will show you the sense of Congress on that

subject; and the resolutions, which you will see in some of the papers

sent you, expressive of the same sentiments from almost every separate

legislature, will show that the fidelity of this country is

incorruptible.

The season of the year affords no military intelligence. Our troops

are in quarters at West Point. The French army are waiting at

Providence such orders as the operations in the West Indies may

suggest. Their fleet is still at Boston. The America, built at

Portsmouth, is added to them. She is pronounced by connaisseurs to be

a very fine ship; should she answer their expectations, we may hope

to build others for European powers. This would be a very important

commercial object, and as such deserves attention.

General Carleton has restrained the savages from continuing the war,

which they have so long carried on against our frontiers; and Haldiman

has suffered those they had led into captivity to return on parole, so

that we have reason to hope that a little more humanity will mark

their future operations in this country, if ever they should find

themselves sufficiently strong to venture from behind their ramparts.

This consideration, together with the intercession of the Court of

France, has induced Congress to forego their intended retaliation on

Captain Asgill, who is discharged from his confinement and suffered to

go to New York on parole.

You will find in the enclosed papers, all the intelligence we have

with respect to the proposed evacuation of Charleston. We have been in

daily expectation of hearing that it was abandoned for a long time

past, but have not as yet had our expectations answered.

The enclosed resolution will inform you that Mr Boudinot is President

in the room of Mr Hanson. Congress have again appointed Mr Jefferson

one of their Ministers for making peace. I have not yet been informed

whether he accepts the appointment, though I have some reason to

conclude he will.

Mr Stewart going to Paris affords me a safe opportunity of sending a

cypher there for you; and if Mr Jay can contrive to get it to you

without inspection, you will be enabled to correspond with more

latitude in future.

I am, Sir, &c.

ROBERT R. LIVINGSTON.

* * * * *

TO ROBERT R. LIVINGSTON.

Madrid, December 10th, 1782.

Sir,

On the 5th instant I did myself the honor to address you. To that

letter and those of the 29th of October, and of the 17th of November,

I beg leave to refer you for the occurrences during that period.

I have now the pleasure to inform you, that I have just been shown a

copy in French, of a treaty signed the 30th ult. between the United

States and Great Britain, by our Commissioners and Mr Oswald, in which

the essential objects desired by Congress have been obtained. Not

having it in my power to take a copy, I confine myself to inform you,

that it consists of nine articles, of which the principal are a

renunciation, in the strongest terms, of all sovereignty claimed by

the King of Great Britain for himself and his successors. A

description of the limits of the States agreeably to the ultimata of

Congress, as nearly as I can recollect from a cursory perusal; the

right of fishery on the Great Bank accorded; the same on the coasts of

Nova Scotia, in the Straits of Labrador, and the Gulf of St Lawrence,

with the permission to cure and dry our fish on all the uninhabited

parts of Nova Scotia and Labrador, the Islands of Magdaline and

Newfoundland excepted; with a proviso that this permission is to cease

whenever the said coasts and islands shall be inhabited, unless leave

shall be demanded and obtained previously of the inhabitants thereof;

a recommendation of Congress to the States in favor of the British who

have not borne arms, possessing property in America; of the

non-residents and loyal inhabitants in the same predicament, &c. &c.

&c. But this article depends entirely on the recommendations of

Congress, the States being the final arbiters.

Great Britain in this treaty associates the States in their right of

the free navigation of the river Mississippi, and also in that of the

river St Mary's. All places in possession of the enemy belonging to

the United States to be restored, with the cannon, &c. &c. which shall

appear to have been their property, together with the public and

private archives, which may have fallen into their hands; all

conquests made on the one part or the other after the signature, to be

restored. This treaty is conditional, that is, not to take place until

France has concluded a peace with Great Britain. Neither Spain nor

Holland are mentioned in it. If political vengeance is ever

justifiable, it is on the present occasion. You will pardon the hasty

manner in which I wrote this. A desire of augmenting your sources of

information will, I hope, plead my apology. I am much afraid that my

situation here will be more disagreeable than ever. I flatter myself,

that my political conduct has been such as not to draw upon me

personal resentments. I hope, at all events, I have conducted myself

in a manner not to have merited censure, if circumstances have not

permitted me to acquire approbation. For the rest, I have a full

reliance on the wisdom of Congress.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

* * * * *

TO ROBERT R. LIVINGSTON.

Madrid, December 30th, 1782.

Sir,

On the 10th instant I had the honor to inform you, that I had seen a

French translation of a conditional treaty, concluded between the

Commissioners of the United States at Paris, and Mr Oswald on the part

of Great Britain, the 30th ult. I have since received a letter from Dr

Franklin enclosing a copy of it. I hope it will be satisfactory to

Congress, and the people at large. Various are the reflections to

which this event has given rise here. I am persuaded that this Court

was far from expecting that Great Britain would make the concessions

she has made to the States. The surprise, and even the chagrin of

several of the Ministers and their adherents were apparent, and from

the instant they received the intelligence, I am convinced their

attention has been turned to peace.

It has been suggested, that our Commissioners signed this treaty

without the privity of the Court of France. This suggestion was made

with a view to pacify this Court, and to calm the resentment, which at

Versailles, it was supposed, might be conceived here on this account.

The means employed prove that the French Ministry apprehended this

resentment, but were in no manner sufficient to answer the purpose

they were intended to serve. The Count de Florida Blanca, speaking of

France upon this occasion, said to a friend of mine with some emotion,

the French Ministry was too precipitate in beginning the war, and is

equally so in their endeavors to conclude it. M. Musquiz, the Minister

of Finance, and M. Del Campo have expressed the same sentiments, and

have insinuated to some, that France concerted this measure with our

Commissioners to force Spain to a peace. To others they expressed

their apprehensions that Lord Shelburne had duped the French cabinet.

They fear the duplicity of the latter Minister, and this fear joined

to their present situation has, probably, rendered them more

reasonable in their demands and concessions. They will now style this

conduct moderation. I conjecture this, because the Count de Florida

Blanca, speaking to the Russian Minister on the subject of the peace,

told him, that were the propositions on the part of Spain towards an

accommodation known, all Europe would be convinced of the moderation

of his Catholic Majesty, and that for his part, he should have no

objection to make them public.

On the 28th instant a courier was despatched to Paris, with

instructions to the Count d'Aranda. On the 18th, one was sent to the

same Minister, with propositions which were then regarded as their

ultimata. It is now rumored in the palace, that Spain had consented to

leave Gibraltar in the possession of England. Since the departure of

this courier the Count de Florida Blanca has spoken of the peace as

certain, if the British Ministry are candid. As soon as I received

advice of the treaty above mentioned, I consulted the French

Ambassador on the part I had to act here. I apprehended that it would

be improper for me to act longer in a public character, after the

acknowledgment by Great Britain, without being received in all

respects as such. He felt the delicacy of my situation, and advised me

to remain tranquil until the fate of a negotiation for a general

pacification was known. In consequence, I have confined myself to mere

personal civilities, and have neither addressed nor solicited the

Minister on any affair since.

The affair of the Dover cutter remains in the same situation. The

Ministry have consented to diminish a third part of the duties

demanded on the produce of the West Indies imported in American

vessels. Mr Harrison has not been obliged to pay as yet those duties

at Cadiz. I have just received a letter from the Marquis de Lafayette,

who arrived at that port the 23d instant, having preceded the French

fleet of nine sail and seven thousand troops, which sailed from Brest

the 7th. The letter was calculated for inspection, and intended to

excite in this Ministry, distrust of Lord Shelburne, and to induce

them to furnish Congress with funds for the prosecution of the war. I

received it by post, and answered it in the same style, by the same

conveyance. I also made use of the hints to throw out to persons, who

I know will convey them to the Ministry.

They cannot procure sufficient funds for their own expenses. They have

just opened a loan of one hundred and eighty millions of reals, of

which it is proposed to receive two thirds in cash, and the other in

obligations of debts contracted in the reign of Philip the Fifth. The

duties on tobacco are engaged for the payment of the interest, which

is three per cent in perpetuity, and seven per cent in annuities.

These are the outlines of the proposed plan, I have seen the brouillon

of the schedule, which is not yet published. No great success is

expected from this loan. On the 20th an assembly of the subscribers to

the bank of San Carlos was held to choose directors and other

officers, and to deliberate on further means for its establishment.

The Governor of the Council of Castile presided at this assembly, the

Minister of Finance was present, as likewise were the First Under

Secretaries of the different departments of government. I found means

to procure admittance to this meeting. Every proposition made by the

projector, (M. Cabarrus) was unanimously agreed to. There were no

speeches except to applaud the bounty of the King, who, to enable the

bank to commence its operations, has granted thirty millions of reals

in specie, and to the same amount in grain for the supply of the army,

navy, &c. The directors chosen are much my friends, and have promised

to give America the preference in all articles which it can furnish

for the use of the marine, &c. &c. These directors as I advised you in

former letters, are charged with the supplies for the army, navy, &c.

with a commission of ten per cent to the profit of the bank. It will

commence its proceedings in the month of April, with a capital of

between four and five million of dollars.

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