Minister should not have received my letter sent him yesterday by the
Court courier. Why and by whose means it was kept back can only be
conjectured. Had not the Ambassador's application supplied the want of
it, a pretext for the Minister's silence would thence have arisen. The
letter did not in fact miscarry, for the Minister afterwards received
it. The Minister's caution in making his becoming engaged for the
advances in question to depend on M. Cabarrus' persisting in the same
dispositions he had lately declared, relative to the time he would be
content to wait for a reimbursement, is somewhat singular, considering
that his offers on that head had been repeatedly and explicitly
communicated to the Minister, and to the Ambassador of France, both by
him and by me. Immediately on receiving the Ambassador's letter, I
gave it to Mr Carmichael with instructions to show it to M. Cabarrus,
and bring me back his answer without delay, for I was then expecting
the notary and others with bills.
Mr Carmichael returned and informed me, that he had communicated the
letter to M. Cabarrus, and that instead of abiding by his former
offer, to be content with the Minister's engaging to see him repaid in
ten or twelve months, he insisted on being repaid in four months, in
four equal monthly payments, and those payments secured by orders on
the rents of the general post-office; and that M. Cabarrus promised
either to write or speak to the Minister about it.
A new application to the Minister became necessary, and consequently
further time and indulgence from the holders of the bills was to be
solicited.
I told the notary, that I was in treaty with M. Cabarrus for the
supplies I wanted, and that one or two articles remained to be
adjusted, which could not be done till the next day.
I therefore requested him to suspend the protest for twentyfour hours
more, and to apply to the holders of the bills for permission, adding
that near twenty of them belonged to M. Cabarrus, and that from the
friendly conduct of several of the others I had reason to flatter
myself, that they would readily consent. He seemed surprised at what I
said respecting my expectations from M. Cabarrus, and with a degree of
indignation told me, that M. Cabarrus was more pressing than any of
the others, and had already sent him two messages to conclude the
matter with me without delay, that he had received one of the messages
the day before, and the other that morning. He nevertheless cheerfully
undertook to obtain permission from the holders of the bills to wait
till the next afternoon, and succeeded in it.
The next morning, viz. the 16th of March, I waited upon the
Ambassador. I mentioned to him these several facts, and told him, that
my hopes from M. Cabarrus were at an end, for that exclusive of other
circumstances it was not probable that, considering his lucrative
connexions with government, he would risk treating the promise of the
Minister, made in consequence of his own offer, with so little
respect, as to demand such formal and unusual securities for the
performance of it, unless there had been some previous concert, or
indirect management in the case. The Ambassador declined assenting to
this opinion. He promised to see the Minister, with whom he was that
day to dine, and to send me his positive and final answer by four
o'clock in the afternoon.
Having prepared the draft of a protest, I thought it would not be
amiss to show it to the Ambassador. He returned it to me without
making any other remark, than that it was rather pointed.
From the Ambassador's I went to M. Cabarrus'; he had not been at the
Pardo, and was then at a meeting of merchants, to whose consideration
his plan of a bank had been referred.
The Ambassador went to the Pardo and mentioned the matter to the
Minister, who replied briefly, "that affair is already arranged with
M. Cabarrus," but the Chevalier de Bourgoing, having been desired to
bring back a decided answer, applied to M. Del Campo on the subject,
who told him, "that they could not possibly comply with M. Cabarrus'
terms; that he had written so that morning to M. Cabarrus by a private
courier, and that in the evening the Minister would repeat it to him
officially." On the Chevalier's mentioning this to the Ambassador, he
was clearly of opinion that I had not any resource left, and,
therefore, that the bills must be protested, and that the Chevalier
should tell me so. I showed the protest, as translated into Spanish by
M. Gardoqui, to the Chevalier. The original in English is as follows.
"Mr Jay says, that when he accepted the bills hereunto annexed, he had
good reason to expect to be supplied with the funds necessary to pay
them. That he has been disappointed in the expectations he was
encouraged to entertain on this subject, and that his endeavors to
obtain moneys for the purpose both here and elsewhere have been
unsuccessful, although the bills which remain to be paid by him,
together with all his other engagements, do not exceed twentyfive
thousand pounds sterling. That these disappointments being unexpected,
he cannot, for want of time, have recourse to Congress, and,
therefore, finds himself reduced to the mortifying necessity of
permitting them to be protested."
The Chevalier approved of the protest, but the notary on reading it
observed, that the sum was really so trifling, that he thought it
would do better to strike it out. The Chevalier was struck with this
remark, and advised me with some earnestness to make no mention of the
sum, for, said he, "it will appear very extraordinary, that you should
be obliged to protest the bills of Congress for the want of such a
sum, and people will naturally turn their eyes towards France, and ask
how it happened that your good allies did not assist you; it will look
as if we had deserted you."
I replied, that since the bills must be protested, I was content that
my true situation should be known. I admitted his inferences to be
just, and naturally flowing from the facts, adding, that as France
knew my situation and had withheld relief, she had so far deserted us;
but that I was, nevertheless, mindful of the many proofs we had
received of her friendship, and should not cease to be grateful for
the ninetynine acts of friendship she had done us, merely because she
had refused to do the hundredth.
In short, I directed the notary to recite this protest _verbatim_.
This protest was drawn at my leisure, and with much consideration. It
operated as I expected, and I am persuaded you will see the reason of
each sentence in it without the aid of my comments. I will only
remark, that I was at first induced to insert, and afterwards to
refuse striking out the sum, lest from leaving it uncertain, the
public might have had room to conjecture, or individuals to insinuate,
that I had imprudently run into such rash and expensive engagements,
as to render it improper for Spain or France to afford me the
necessary supplies.
Nor did it appear to me that both of them should have reason to be
ashamed of permitting our credit to be impeached and injured for such
an unimportant sum. Both Courts were blamed, and we not only
acquitted, but pitied by the public.
I ought to inform you, that the sum which I really wanted did not
amount to twentyfive thousand pounds, but as some straggling bills
frequently made their appearance, and it could not be foreseen how
much those which might still be behind would amount to, I thought it
advisable to make a considerable allowance on that score; for in case
I should have asked for less than might afterwards have proved
indispensable, I should, doubtless, have been put to great
difficulties in obtaining a supply for the deficiency.
In justice to the bankers who held the protested bills, I must say
that they in general appeared disposed to show me every reasonable
indulgence. The house of Joyes and Sons, though considered as
anti-American, were particularly civil. They offered to take such of
the bills as had been remitted to them on themselves, provided I would
only pass my word for the payment of them within a few weeks; but as I
had no assurance of funds, I could not risk it. Besides, unless all
the bills due could have been suspended on the like terms, it could
have answered no purpose, because the difference of protesting a few
bills more or less was unimportant. The conduct of Don Ignacias
Salaia, the notary, was so particularly and singularly generous, that
I cannot forbear mentioning it. Though without expectations, and
uninfluenced by promises from me, he behaved as if the case had been
his own, and proved the sincerity of his professions by doing
everything in his power to serve me. On perceiving how much he was
engaged in my favor, I did not choose to lessen the appearance of its
being disinterested by promises of rewards. But after the bills were
protested, and he could be of no further use, I sent him a gold piece
of sixteen dollars, as an acknowledgment for the trouble I had given
him. He returned it with an assurance, that he wished to serve me from
other motives, and the next day waited upon me to thank me for that
mark of attention, and again to assure me that his best services were
always at my command.
When the bills were protested, and M. Cabarrus' conduct mentioned in
his presence, the poor fellow literally shed tears. I was much
affected by the warmth and generosity of this man's heart, and should
not have readily pardoned myself, had I neglected to bear this
testimony to the goodness of it.
During the whole time that this matter was in agitation, that is from
the 11th to the 16th of March, and for sometime afterwards, M.
Cabarrus did not come near me.
On the 18th I wrote a letter to Dr Franklin informing him of the
protest, and reciting the reasons assigned for it. I also hinted the
propriety of taking up the bills at Paris, if possible.
The national pride of the Ambassador of France was hurt by this event;
I am sure he regretted it as disreputable and impolitic. I remarked to
him, that most of our cross accidents had proved useful to us, and
that this might save us the Mississippi. For I thought it more prudent
to appear a little incensed than dispirited on the occasion. I suspect
that there has been an interesting conversation between the two Courts
about us. He told me this winter, that he believed Spain wished to
modify our independence, and to keep herself in a situation to mediate
between us and England at the general peace. He did not explain
himself further. As great successes on our part must operate against
such designs, the Spanish Minister can neither rejoice in, nor be
disposed to promote them; and this may help both to account for the
little impression made by the capitulation of York, and for their
conduct as to our bills and propositions, &c. I am sure that they fear
us too, and the more, perhaps, as they have misbehaved towards us.
Not many days elapsed before a special courier from Paris brought
advices to this Court, that the British Parliament had resolved to
advise the King to cease all offensive operations against us, &c.
This, and the subsequent debates and resolutions of Parliament
relative to the American war, made a deeper impression here in our
favor than any event which has happened since my arrival. New ideas
seemed to pervade the whole Court and people, and much consultation as
well as surprise was occasioned by it.
On the 26th of March I received the following letter from Dr Franklin,
from the hands of M. Cabarrus, to whom I behaved, on that occasion,
with reserved and cold politeness.
"Passy, March 16th, 1782.
"Dear Sir,
"I have received your several favors of January 30th, February 11th
and March 1st, and propose to write fully to you by the next post. In
the meantime this line may serve to acquaint you, that I paid duly all
your former bills drawn in favor of M. Cabarrus, and that having
obtained a promise of six millions for this year, to be paid me
quarterly, I now see that I shall be able to pay your drafts for
discharging the sums you may be obliged to borrow for paying those
upon you, in which however I wish you to give me as much time as you
can, dividing them so that they may not come upon me at once. Interest
should be allowed your friends who advance for you. Please to send me
a complete list of all the bills you have accepted, their numbers and
dates, marking which are paid, and what are still to pay.
"I congratulate you upon the change of sentiments in the British
nation. It has been intimated to me from thence, that they are willing
to make a separate peace with us exclusive of France, Spain, and
Holland, which so far as relates to France is impossible; and I
believe they will be content that we leave them the other two; but
Holland is stepping towards us, and I am not without hopes of a second
loan there. And since Spain does not think our friendship worth
cultivating, I wish you would inform me of the whole sum we owe her,
that we may think of some means of paying it off speedily.
"With sincerest regard, I am, &c. &c.
B. FRANKLIN.
"_P. S._ The Marquis de Lafayette has your letter."
I answered this letter as follows, by a French courier.
"Madrid, March 19th, 1782.
"Dear Sir,
"On the 18th instant I informed you of my having been reduced, by M.
Cabarrus' want of good faith, to the mortifying necessity of
protesting a number of bills, which were then payable.
"Your favor of the 16th instant reached me three days ago. It made me
very happy, and enabled me to retrieve the credit we had lost here by
those protests. I consider your letter as giving me sufficient
authority to take the necessary arrangements with the Marquis d'Yranda
for paying the residue of my debts here, as well as such of the
protested bills as may be returned for that purpose.
"The account you request of all the bills I have accepted is making
out, and when finished shall be transmitted by the first good
opportunity that may offer. You may rely on my best endeavors to
render my drafts as little inconvenient to you as possible.
"The British Parliament, it seems, begin to entertain less erroneous
ideas of us, and their resolutions afford a useful hint to the other
powers in Europe. If the Dutch are wise, they will profit by it. As to
this Court, their system (if their conduct deserves that appellation)
with respect to us has been so opposite to the obvious dictates of
sound policy, that it is hard to divine whether anything but
experience can undeceive them. For my part, I really think that a
treaty with them daily becomes less important to us.
"That Britain should be desirous of a separate peace with us is very
natural, but as such a proposal implies an impeachment of our
integrity, I think it ought to be rejected in such a manner as to show
that we are not ignorant of the respect due to our feelings on that
head. As long as France continues faithful to us, I am clear that we
ought to continue hand in hand to prosecute the war until all their,
as well as all our, reasonable objects can be obtained by a peace, for
I would rather see America ruined than dishonored. As to Spain and
Holland, we have as yet no engagements with them, and therefore are
not obliged to consult either their interest or their inclinations,
further than may be convenient to ourselves, or than the respect due
to our good allies may render proper.
"France, in granting you six millions, has acted with dignity as well
as generosity. Such gifts, so given, command both gratitude and
esteem, and I think our country possesses sufficient magnanimity to
receive and remember such marks of friendship with a proper degree of
sensibility. I am pleased with your idea of paying whatever we owe to
Spain. Their pride, perhaps, might forbid them to receive the money.
But our pride has been so hurt by the littleness of their conduct,
that I would in that case be for leaving it at the gate of the palace,
and quit the country. At present such a step would not be expedient,
though the time will come when prudence, instead of restraining, will
urge us to hold no other language or conduct to this Court than that
of a just, a free, and a brave people, who have nothing to fear from,
nor to request of them.
"I am, &c. &c.
JOHN JAY."
On receiving Dr Franklin's letter I sent for my good friend the
notary, and desired him to make it known among the bankers, that I had
received supplies equal to all my occasions, and was ready to pay to
every one his due. He received the commission with as much pleasure
as I had the letter. He executed it immediately, and our credit here
was re-established.
M. Cabarrus became displeased with himself, and took pains to bring
about a reconciliation by the means of third persons, to whom I
answered, that as a Christian I forgave him, but as a prudent man,
could not again employ him. As this gentleman has suddenly risen into
wealth and importance, and is still advancing to greater degrees of
both, I shall insert a letter, which I wrote in reply to one from him
on the subject.
TO M. CABARRUS.
"Madrid, April 2d, 1782.
"Sir,
"I have received the letter you did me the honor to write on the 29th
of March last.
"As soon as the examination of your accounts shall be completed, I
shall be ready to pay the balance that may be due to you, either here
or by bills on Paris.
"I should also be no less ready to subscribe a general approbation of
your conduct, if the latter part of it had been equally fair and
friendly with the first.
"Although it always affords me pleasure to recollect and acknowledge
acts of friendship, yet, Sir, I can consider only one of the five
instances you enumerate as entitled to that appellation. I shall
review them in their order. You remind me,
"1st. _That you risked the making me considerable advances, at a time
when I could only give you hopes, and not formal assurances of
repayment._
"I acknowledge freely and with gratitude, that (exclusive of the
commissions due to you for paying out the various sums I had placed in
your hands) you did advance me between twenty and thirty thousand
dollars; but as the United States of America were bound to repay it,
and I had reason to expect supplies to a far greater amount, I
conceived, and the event has shown, that you did not run any great
risk, although the uncertainty of the time when these supplies would
be afforded, prevented my giving you positive and formal assurances of
the time and manner of repayment.
"2dly. _That you augmented these advances to quiet the demands of the
Marquis d'Yranda._
"Permit me to remind you, that this circumstance might have been more
accurately stated. The fact was as follows. I had received about fifty
thousand dollars, which, by a prior contract, I had agreed to pay the
Marquis on account of a greater sum borrowed from him in paper. The
sum in question was in specie. You and others offered to exchange it
for paper at the then current difference. The preference was given to
you. Under that confidence, and for that express purpose, the specie
was sent to your house, and you did exchange it accordingly. With what
propriety, Sir, can you consider this transaction in the light of
making advances, or lending me money to quiet the Marquis d'Yranda? It
is true that by sending the money to your house I put it in your
power, by detaining part of it, to repay yourself what you had before
advanced. But, Sir, such a proceeding would have been a flagrant
breach of trust; and I cannot think any gentleman ought to give
himself, or expect to receive, credit for merely forbearing to do a
dishonorable action.
"3dly. _That you gave me, on my signature, the money for which I
applied to you for my personal use, without detaining any part of it
on account of the balance then due to you._
"The transaction you allude to was as follows. I had authority to draw
from his Excellency, Dr Franklin, on account of my salary. It happened
to be convenient to me to draw for a quarter. You agreed to purchase
my bill on him, and to pay me in specie at the current exchange. As it
was post day, I signed and sent you the bill before I had received the
money. These are the facts, and it seems two favors are to be argued
from them. First, that you did not scruple my signature, or in other
words, that you took my bill. To this I answer, that you had no reason
to doubt its being honored. All my former ones had been duly paid. Nor
could you or others produce a single instance, in which my signature
had not justified the confidence reposed in it. Secondly, that by
sending you the bill before you had sent me the money for it, I gave
you an opportunity of keeping the money, and giving my public account
credit for it, and that in not taking this advantage you did me a
favor.
"After having agreed to purchase this bill, and pay me the money for
it, you could have no right to detain it. And surely, Sir, you need
not be informed, that there is a wide distinction between acts of
common justice and acts of friendship. I remember that there was then
but little demand for bills on Paris, and so far as you may have been
induced to take this one, from regard to my convenience, I am obliged
to you.
"4thly. _That by your agency you accelerated the payment of the
twentysix thousand dollars._
"I really believe, Sir, that you did accelerate it, and you would
have received my thanks for it, if the unusual and very particular
manner, in which the order for that payment was expressed, had not
been less consistent with delicacy, than with those improper fears and
apprehensions, which the confidence due to my private as well as
public character, ought to have excluded from your imagination. All
the preceding orders, which had been given on similar occasions,
directed the money to be paid to me. But in this instance, as I owed
you a considerable balance, care was taken that the twentysix thousand
dollars should not, as formerly, be paid to me, but to you on my
account.
"5thly. _That you offered to make me further advances, if either the
Ambassador of France or the Minister of State would give you a
positive order for the purpose, which you say they constantly
refused._
"It is true, Sir, that you offered to supply me with money to pay my
acceptances for the month of March, provided the Minister of State or
the Ambassador of France would engage to see you repaid with interest,
within a certain number of months, sometimes saying that you would be
content to be repaid within seven months, and at others within ten or
twelve months, and you repeated this offer to me in these precise
terms on the 11th of March last.
"This offer was friendly. I accepted it with gratitude, and in full
confidence that you would punctually perform what you had thus freely
promised. I accordingly made this offer known to the Minister, and
solicited his consent. On the 15th day of March he authorised the
Ambassador of France to inform me, that you might advance me from
forty to fifty thousand current dollars on those terms. The
Ambassador signified this to me by letter, and that letter was
immediately laid before you. Then, Sir, for the first time, did you
insist on being repaid in four months, and that in four equal monthly
payments, secured by orders on the rents of the post-office, or on the
general treasury, &c. &c. These terms and conditions were all new, and
never hinted to me in the most distant manner until after the Minister
had agreed to your first offer, and until the very moment when the
holders of the bills were demanding their money, and insisting that
the bills should either be paid or protested.
"The Minister rejected these new conditions, and you refused to abide
by the former ones. The bills were then due. I had no time even to
look out for other resources, and thereby was reduced to the necessity
of protesting them.
"Such conduct, Sir, can have no pretensions to gratitude, and affords
a much more proper subject for apology than for approbation. I confess
that I was no less surprised than disappointed, and still remain
incapable of reconciling these deviations from the rules of fair
dealing, with that open and manly temper which you appear to possess,
and which I thought would insure good faith to all who relied on your
word.
"How far your means might have failed, how far you might have been
ill-advised, or ill-informed, or unduly influenced, are questions,
which, though not uninteresting to you, are now of little importance
to me.
"I acknowledge with pleasure, that until these late singular
transactions I had reason to believe you were well attached to the
interests of my country, and I present you my thanks for having on
several former occasions endeavored to promote it.
"I am, &c. &c.
JOHN JAY."
As M. Cabarrus was concerned in contracts with government for money,
and was the projector of several of their ways and means for supplying
the Royal Treasury, it appeared to me expedient that he should wish us
well, and be our banker. Some advantages have arisen from it, and they
would probably have been greater, if not opposed by the great and
unfriendly influence of M. Del Campo. At the same time that I blame M.
Cabarrus, I cannot but pity him, for there is much reason to consider
him in the light of the _scape goat_.
I have now employed Messrs Drouilhet to do our business; that house is
one of the most considerable here in the banking way.