The Diplomatic Correspondence of the American Revolution Volume VII Part 32

"I have the honor to be, Sir, &c.

JOHN JAY."

As this letter was, among other things, designed to establish the expectations and encouragement given me by the Minister, as to money, in the last conference, by obliging him either to deny them against truth, or admit them, at least, by his silence, I desired Mr Carmichael to deliver it with his own hands, which he accordingly did.

It still remains unanswered.

Your Excellency will be at no loss to perceive, that this was an improper season for pushing on the treaty, and that it would not have been prudent to have given poignancy to the Minister's feelings for the loss of his frigates, and the trouble of our bills, by disputes about the Mississippi, &c. &c. I therefore did not remind him of the notes he had promised, nor indeed say anything at all about the matter.

About this time I met with a printed copy of an act of the State of Connecticut, reciting and adopting the resolutions of Congress of the 18th of March last, respecting the former and new paper emissions.

This was the first advice I had of those resolutions. The promise of annual interest in Europe appeared to me to be a hardy measure, though, in my opinion, the weakest side of the plan.

Finding the Minister's heart and imagination much attached to his favorite idea of getting American frigates at the expense of the United States, I gave him the following hint.

"Madrid, June 28th, 1780.

"Sir,

"I have the honor of transmitting to your Excellency, herewith enclosed, a copy of an act of the State of Connecticut, just come to hand, in which are recited certain resolutions of Congress, pa.s.sed the 18th of March last.

"These resolutions are calculated to put the American finances on a permanent footing. They direct, among other things, that bills be issued, redeemable in specie, with interest, at the expiration of six years. The interest to be paid at the redemption of the bills, or at the election of the holder annually, at the American Loan Offices, in sterling bills of exchange on the commissioners in Europe.

"Your Excellency will perceive, that when this plan, so well concerted, shall be fully executed, it will furnish the United States with resources equal to all the exigencies of the war, and probably enable them to supply his Catholic Majesty with vessels, &c, &c.

"I take the liberty, therefore, of submitting to your Excellency's consideration, whether it would not be for the benefit of both nations, that his Majesty, on the one hand, should engage his responsibility for the credit of a certain proportion of the sum so to be emitted; and that the United States, on the other hand, should not only pledge their faith to indemnify his Majesty, but also furnish him with certain aids in vessels, &c.

"If your Excellency should think this hint worthy of your attention, it will be easy to improve it, and adjust the particulars.

"I have the honor to be, &c.

JOHN JAY."

This letter was accompanied with the following one, on the subject of some more bills that had just arrived.

"Mr Jay presents his respectful compliments to his Excellency the Count de Florida Blanca, and has the honor of informing him, that he has been called upon to accept bills to the amount of between ten and eleven thousand dollars; that the far greater part of them belong to Messrs Joyce of this city, who have agreed to wait for an answer until Monday next.

"Mr Jay exceedingly regrets his being obliged to give his Excellency so much trouble, but still flatters himself, that, when his Excellency considers it as his duty which imposes that necessity upon him, his goodness will excuse it.

_Madrid, June 28th, 1780._"

I ought also to add, that I had sent to the Count a representation on the subject of a very high handed stretch of power in the Governor of Teneriffe, towards a prize carried there by some Americans. On the next day I received the following answer to these three papers.

Translation.

"Aranjues, June 29th, 1780.

"The Count de Florida Blanca has had the honor of the three last letters, which Mr Jay has been pleased to write him.

"The first relates to a privateer detained in the Canaries.

On this point he can say nothing until he has obtained some further information thereon.

"The second respects some new bills of exchange just presented by Messrs Joyce, to the amount of between ten and eleven thousand dollars. The Count can give no positive answer hereon, without first taking the orders of the King, his master, and having a meeting with the other Ministers, and some of these having already gone to Madrid, a determination cannot be immediately had, which renders it necessary for Mr Jay to require Messrs Joyce to wait some days longer for the answer in question.

"The third contains a project of an arrangement, by which his Majesty should oblige himself for his responsibility for certain sums in favor of Congress, and they, on their part, for the indemnification of the said sums at a certain period, by furnishing some vessels, &c. Mr Jay is therefore entreated to draw out a more clear and precise plan on this subject, noting therein the sum to which the responsibility of the King should extend, and on which they may converse at their first interview.

"In the meanwhile the Count has the honor of a.s.suring him of the sincerity of his esteem and attachment."

Congress will observe, that the Minister still kept up the idea of an interference in favor of these bills. On the 3d of July, the Count having removed to Madrid, he wrote me a note expressing the same idea.

It is in these words

Translation.

"The Count de Florida Blanca presents his compliments to Mr Jay, and prays to be informed when the last bills of exchange, which he mentioned the other day as being in the hands of Messrs Joyce, and amounting to about ten or eleven thousand dollars, will become payable. At the Palace, 3d of July, 1780."

Thus things were apparently in good train, when the news of the loss of Charleston became credible. The effect of it was as visible the next day, as that of a hard night's frost on young leaves.

I requested a conference with the Minister, and had one on the evening of the 5th of July. The following are notes of it.

Madrid, July 5th, 1780.

Mr Jay waited on the Count de Florida Blanca agreeably to an appointment made by the latter to meet at his house at half past eight this evening.

After the usual compliments, the bad news relative to the surrender of Charleston, just received, became the topic of conversation. The Count mentioned the channels through which he had received it, viz. by an express despatched by the Spanish Amba.s.sador at Lisbon, in consequence of intelligence which Governor Johnson had received and published in that city, and by letters from the Count d'Aranda, with the accounts printed at London of the affair. He expressed his sorrow on the occasion, but observed, that the Count d'Aranda flattered him, that the arrival of the Chevalier de Ternay in that part of the world would totally change the face of affairs, particularly as there would be eight vessels of the line, and more than five thousand troops instead of three thousand, and three vessels of the line which he had been informed were demanded by General Washington.

He seemed to think it strange, that the place had not been better defended, and that more vigorous measures had not been taken to impede the enemy's progress, and observed, that if the town was not in a condition to stand a siege, it would have been better to have withdrawn the troops and stores, and reserved them for the defence of the country. Mr Jay replied, that probably when all circ.u.mstances relative to this affair were known, there might be reasons which would account for the conduct of the Americans on this occasion; to the truth of which remark the Count appeared to a.s.sent. He then mentioned the death of M. Mirales, and regretted his loss at this time. He said, he had recommended to his Majesty a person to succeed him, whom we knew, that spoke English, whom he expected soon, and to whom he would explain his ideas on the subject of the bills, and on other matters, touching which Mr Jay had written to him, and who would confer also with Mr Jay on those subjects.

Mr Jay mentioned, that if it was agreeable to his Excellency to permit M. Del Campo (a confidential secretary of the Count, who speaks English, and who translated all the letters to and from the Count) to be present, he should be able to explain his sentiments more fully and clearly. Though the Count did not object to this proposal, he appeared disinclined to it, and said, that with the a.s.sistance of Mr Carmichael, then present, they could understand each other very well.

He then proceeded to speak of the bills of exchange in the possession of the Messrs Joyce, and seemed to be surprised that that House should be possessed of so many of them. He advised Mr Jay to be cautious of those gentlemen, saying, that they were as much English in their hearts as the Ministry of that country; that he had known them long, that he thought their conduct extraordinary in being so urgent for the acceptance of these bills. Mr Jay then informed his Excellency, that he had paid those gentlemen a visit in order to obtain further time, and that they had consented to wait until Monday next. The Count mentioned a fortnight or three weeks as necessary, in order that he might have an opportunity of seeing the person he had sent for, and making some arrangements with him. He said, that it would be more agreeable to his Majesty to pay those bills at Cadiz, Bilboa, or Amsterdam, than here; lamented the precipitancy with which Congress had entered into this measure, saying, that if they had previously addressed the King on the subject, ways and means might have been found, either to transport from their possessions in America specie for the service of Congress, or to have enabled them to have drawn bills of exchange at a shorter sight, which would have prevented the loss of one third of the money to which Congress had subjected themselves, by the terms on which the present bills were sold. Mr Jay a.s.sured his Excellency, that by letters he had received from America, from members of Congress and others, he was informed, that the terms were judged so unfavorable to the buyers, that the bills drawn on him sold heavily from that circ.u.mstance solely, and not from any doubt of their credit and payment.

This did not, however, appear to convince his Excellency, who spoke much of the deranged state of our finances and credit; of the advantages taken of Congress by merchants and others, who availed themselves of that circ.u.mstance, which he called cruel extortions, frequently expressing the King's wishes and his own to render America all the service in their power in this crisis of their affairs; but observed, that it was impossible to obtain much money in Europe while France, England, and Spain, were making use of every resource to obtain it for the enormous expenses of the war, and while the channel through which the European merchants received supplies of specie was stopped, viz. the arrival of the usual quant.i.ty from America. This induced him to mention the arrival at Cadiz of three millions of piastres, all of which was on account of the merchants, and again to dwell on what he had before said of the possibility of transmitting specie to the States from the Spanish possessions abroad, and of the effect that this would have in re-establishing the credit of our money. Mr Jay observed in reply, that if a supply of specie could be sent to America, and his Excellency thought that measure more convenient and advisable than bills, the Congress would, in his opinion, readily suspend drawing, on receiving that information; to which the Count answered, that when the person he had sent for arrived, this matter might be further discussed.

Mr Jay then proceeded to observe, that by papers which he had transmitted to his Excellency, he would see that Congress had adopted a system to redeem and destroy the former emissions, and to emit other bills to be paid in Europe with interest in a certain term of years, and in fully establishing this system, it would be probably in their power, not only to sustain the credit of their money, but to contribute, in some measure, to a.s.sist Spain in the way proposed by his Excellency, viz. in building of frigates, &c. &c. He added, that as his Majesty's treasure was detained in America, and as much expense would be incurred by the armaments employed by Spain there, that bills on the Havana in favor of the United States might be more convenient to Spain, and equally contribute to the end proposed. The Count did not seem to disapprove of the idea, but did not enlarge upon it. He asked Mr Jay, if America could not furnish Spain with masts and ship timber. Mr Jay replied, that those articles might be obtained there. The Count then said that he would defer further remarks on this head, till the arrival of the person whom he expected would succeed M. Mirales, and appeared desirous of leaving this subject, and, indeed, all other matters relative to American affairs to be discussed when he came.

In the further course of conversation, he recurred to the subject of the bills in question, and told Mr Jay if an immediate acceptance of them was insisted on, that he might accept them payable at Bilboa, but rather seemed to wish that their acceptance might be delayed till the coming of the abovementioned person. Mr Jay expatiated on the impression, which the acceptance of these bills and every other mark of friendship would make in America at this particular crisis, and the Count, in a very feeling and warm manner, a.s.sured him that his desire to serve the States increased in consequence of their distresses. By his whole conversation he endeavored to show how much he interested himself in the prosperity of our affairs, more than once desiring Mr Jay not to be discouraged, for that with time and patience all would go well, expatiating on the King's character, his religious observation of, and adherence to his promises, and his own desire of having Mr Jay's entire confidence. Mr Jay seized this opportunity of a.s.suring him of his full reliance on the King's justice and honor, and his particular and entire confidence in his Excellency, a.s.serting to him that all his letters to Congress breathed these sentiments. The Count appeared much pleased with this declaration, and, seeming to speak without reserve, hinted his hopes that the combined fleets would soon be in condition to give the law to that of England in the seas of Europe, repeating that measures would be taken, on the arrival of the person expected, to provide for the payment of the bills of exchange, and that other arrangements would be made with the same person, which would contribute to relieve, as much as it was in his Majesty's power, the present distresses of America, of which he frequently spoke very feelingly in the course of this conversation.

Mr Jay reminded his Excellency, in a delicate manner, of the supplies of clothing, &c. &c. which had been promised in a former conference, and said that if they could be sent in autumn, they would be essentially useful. The Count a.s.sured him that measures would be taken for this purpose, with the person so often hinted at in the course of the conference; that probably these goods would be embarked from Bilboa, as everything was so dear at Cadiz. He also once more told Mr Jay, that at all events he might accept the bills presented by Messrs Joyce, payable at Bilboa, though he appeared to wish that this measure might be delayed for a fortnight if possible. The conference ended with compliments and a.s.surances on the one part and the other, the Count endeavoring to persuade Mr Jay of his Majesty's desire to a.s.sist the States, and Mr Jay a.s.suring him of his reliance on his Excellency, and of the good effects which such proofs of his Majesty's friendship would have in America at the present juncture.

In this conference not a single nail would drive. Everything was to be postponed till the arrival of the person intended to succeed M.

Mirales.

On the 11th of July I wrote the Count the following note.

"Mr Jay presents his respectful compliments to his Excellency the Count de Florida Blanca, and has the honor of informing him, that Don Carlos Maria Maraci of this place has presented to him, for acceptance, bills amounting in the whole to one thousand six hundred and sixtyfive dollars. The Messrs Joyce consent to having their bills payable at Bilboa, but have acquainted Mr Jay that the name of the House there, by whom they are to be paid, should accompany the acceptance of the bills, it being necessary to their further negotiation.

"_Madrid, July 11th, 1780._"

To this note the following answer was returned.