PARIS, Feb. 7, 1788.
GENTLEMEN,--Your favors of November the 10th and 13th, and December the
5th, have been duly received. Commodore Jones left this place for
Copenhagen, the 5th instant, to carry into execution the resolution of
Congress of October the 25th. Whatever moneys that court shall be
willing to allow, shall be remitted to your bankers, either in
Amsterdam or Paris, as shall be found most beneficial, allowing
previously to be withdrawn Commodore Jones' proportion, which will be
necessary for his subsistence. I desired him to endeavor to prevail on
the Danish Minister to have the money paid in Amsterdam or Paris, by
their banker in either of those cities, if they have one.
M. Ast (secretary to the consulate) is at L'Orient. Whether he comes up
with the papers, or sends them, they shall be received, sealed up and
taken care of. I will only ask the favor of you, that I may never be
desired to break the seals, unless very important cause for it should
arise.
I have just received from Messrs. Willincks and Van Staphorsts, a
letter of January the 31st, in which are these words: "The official
communication we have of the actual situation and prospect of the
finances of the United States, would render such a partial payment as
that to Fiseaux' house of no avail towards the support of the public
credit, unless effectual measures shall be adopted, to provide funds
for the two hundred and seventy thousand florins, interest, that will
be due the 1st of June next; a single day's retard in which would
ground a prejudice of long duration." They informed me, at the same
time, that they had made to you the following communication: that Mr.
Stanitski, our principal broker, and holder of thirteen hundred and
forty thousand dollars, of certificates of our domestic debt, offers to
have our loan of a million of guilders (of which six hundred and
twenty-two thousand eight hundred and forty are still unfilled)
immediately made up, on condition that he may retain thereout, one
hundred and eighty thousand guilders, being one year's interest on his
certificates, allowing a deduction of ten per cent. from his said
interest, as a compensation for his receiving it in Amsterdam instead
of America, and not pretending that this shall give him any title to
ask for any payment of future interest in Europe. They observe, that
this will enable them to face the demands of Dutch interest, till the
1st of June, 1789, pay the principal of Fiseaux' debt, and supply the
current expenses of your legation in Europe. On these points, it is for
you to decide. I will only take the liberty to observe, that if they
shall receive your acceptance of the proposition, some day's credit
will still be to be given for producing the cash, and that this must be
produced fifteen days before it is wanting, because that much previous
notice is always given to the creditors that their money is ready. It
is, therefore, but three months from this day, before your answer
should be in Amsterdam. It might answer a useful purpose also, could I
receive a communication of that answer, ten days earlier than they. The
same stagnation attending our passage from the old to the new form of
government, which stops the feeble channel of money hitherto flowing
towards our treasury, has suspended also what foreign credit we had. So
that, at this moment, we may consider the progress of our loan as
stopped. Though much an enemy to the system of borrowing, yet I feel
strongly the necessity of preserving the power to borrow, Without this,
we might be overwhelmed by another nation, merely by the force of its
credit. However, you can best judge whether the payment of a single
year's interest on Stanitski's certificates, in Europe, instead of
America, may be more injurious to us than the shock of our credit in
Amsterdam, which may be produced by a failure to pay our interest.
I have only to offer any services which I can render in this business,
either here or by going to Holland, at a moment's warning, if that
should be necessary.
I have the honor to be, with sentiments of the most perfect esteem and
respect, Gentlemen, your most obedient, and most humble servant.