OCTOBER 27, 1797.

About twelve we received another visit from M. X. He

immediately mentioned the great event announced in the

papers, and then said, that some proposals from us had been

expected on the subject on which we had before conversed:

that the Directory were becoming impatient, and would take

a decided course with regard to America, if we could not

soften them. We answered, that on that subject we had

already spoken explicitly, and had nothing further to add.

He mentioned the change in the state of things which had

been produced by the peace with the Emperor, as warranting

an expectation of a change in our system; to which we only

replied, that this event had been expected by us, and would

not, in any degree, affect our conduct. M. X. urged, that

the Directory had, since this peace, taken a higher and

more decided tone with respect to us, and all other neutral

nations, than had been before taken; that it had been

determined, that all nations should aid them, or be

considered and treated as their enemies. We answered, that

such an effect had already been contemplated by us, as

probable, and had not been overlooked when we gave to this

proposition our decided answer; and further, that we had no

powers to negotiate for a loan of money; that our

Government had not contemplated such a circumstance in any

degree whatever; that if we should stipulate a loan, it

would be a perfectly void thing, and would only deceive

France, and expose ourselves. M. X. again expatiated on the

power and violence of France; he urged the danger of our

situation, and pressed the policy of softening them, and of

thereby obtaining time. M. X. again returned to the subject

of money. Said he, you do not speak to the point; it is

money: it is expected that you will offer money. We said

that we had spoken to that point very explicitly: we had

given an answer. No, said he, you have not: what is your

answer? We replied, it is no; no; not a sixpence. He again

called our attention to the dangers which threatened our

country, and asked, if it would not be prudent, though we

might not make a loan to the nation, to interest an

influential friend in our favor. He said we ought to

consider what men we had to treat with; that they

disregarded the justice of our claims, and the reasoning

with which we might support them; that they disregarded

their own colonies, and considered themselves as perfectly

invulnerable with respect to us; that we could only acquire

an interest among them by a judicious application of money,

and it was for us to consider, whether the situation of our

country did not require that these means should be resorted

to.

He said that all the members of the Directory were not

disposed to receive our money; that Merlin, for instance,

was paid from another quarter, and would touch no part of

the douceur which was to come from us. We replied, that we

had understood that Merlin was paid by the owners of the

privateers; and he nodded an assent to the fact. He

proceeded to press this subject with vast perseverance. He

told us that we had paid money to obtain peace with the

Algerines and with the Indians; and that it was doing no

more to pay France for peace. To this it was answered, that

when our Government commenced a treaty with either Algiers

or the Indian tribes, it was understood that money was to

form the basis of the treaty, and was its essential

article; that the whole nation knew it, and was prepared to

expect it as a thing of course; but that in treating with

France, our Government had supposed that a proposition,

such as he spoke of, would, if made by us, give mortal

offence. He asked if our Government did not know that

nothing was to be obtained here without money? We replied,

that our Government had not even suspected such a state of

things. He appeared surprised at it, and said, that there

was not an American in Paris who could not have given that

information. The conversation continued for nearly two

hours; and the public and private advance of money was

pressed and re-pressed in a variety of forms. At length M.

X. said that he did not blame us; that our determination

was certainly proper, if we could keep it; but he showed

decidedly his opinion to be that we could not keep it. He

said that he would communicate, as nearly as he could, our

conversation to the Minister, or to M. Y. to be given by

him to the Minister; we are not certain which. We then

separated. On the 22d of October, M. Z., a French gentleman

of respectable character, informed Mr. Gerry, that M.

Talleyrand, Minister of Foreign Relations, who professed to

be well-disposed towards the United States, had expected to

have seen the American Ministers frequently in their

private capacities; and to have conferred with them

individually on the object of their mission; and had

authorized M. Z. to make this communication to Mr. Gerry.

The latter sent for his colleagues; and a conference was

held with M. Z. on the subject; in which General Pinckney

and General Marshall expressed their opinions, that, not

being acquainted with M. Talleyrand, they could not, with

propriety, call on him; but that, according to the custom

of France, he might expect this of Mr. Gerry, from a

previous acquaintance in America. This Mr. Gerry

reluctantly complied with on the 23d, and with M. Z. called

on M. Talleyrand, who, not being then at his office,

appointed the 28th for the interview. After the first

introduction, M. Talleyrand began the conference. He said

that the Directory had passed an arrêt, which he offered

for perusal, in which they had demanded of the Envoys an

explanation of some part, and a reparation for others, of

the President's speech to Congress, of the 16th of May: he

was sensible, he said, that difficulties would exist on the

part of the Envoys relative to this demand; but that by

their offering money, he thought he could prevent the

effect of the arrêt. M. Z., at the request of Mr. Gerry,

having stated that the Envoys have no such powers, M.

Talleyrand replied, they can, in such a case, take a power

on themselves; and proposed that they should make a loan. A

courier arriving at this moment from Italy, and M.

Talleyrand appearing impatient to read the letters, Mr.

Gerry took leave of him immediately. He followed to the

door, and desired M. Z. to repeat to Mr. Gerry what he, M.

Talleyrand, had said to him. Mr. Gerry then returned to his

quarters with M. Z., took down the particulars of this

interview, as before stated, sent for Gens. Pinckney and

Marshall, and read it to them in the presence of M. Z., who

confirmed it. Generals Pinckney and Marshall then desired

M. Z. to inform M. Talleyrand that they had nothing to add

to this conference, and did not wish that the arrêt might

be delayed on their account.

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