The Diplomatic Correspondence of the American Revolution Volume IX Part 3

TO THE COMMITTEE OF FOREIGN AFFAIRS.

St Ildefonso, August 22d, 1780.

Gentlemen,

In the course of this month I did myself the honor of writing to you by the General Pickering from Bilboa, and the Captain Kyan from Cadiz, as also via France. In these letters I informed you of the situation of our affairs here, and of that of Europe in general; since which, we have advanced very little. The Minister had informed Mr Jay, on the 5th of July, that he had sent for a person to succeed M. Miralles, and that on his arrival, arrangements would be made with respect to the bills presented to Mr Jay for payment, and that he would then enter into discussions on the other objects of Mr Jay's mission. Before and since that period, bills to the amount of thirty thousand dollars have been presented, of which Mr Jay has accepted for fourteen thousand, by the direction of the Minister, and none of the others have as yet been protested.

You will see by a state of the finances of this country, which in compliance with Mr Jay's instructions to me, at my departure from Cadiz, I have had the honor to give him, that their revenues and resources since the war have greatly diminished, and that previous to that period, they were by no means so flourishing as Congress had reason to suppose. In most of the conferences with the Minister, the scarcity of cash has been objected more than the want of inclination, and hints have been thrown out, that it would be much more convenient for the Court, to grant the United States aids in money from their possessions in America than in Europe. Although hopes have been as constantly given, that a part of the sum drawn for would be furnished at the end of the present year, or commencement of the next, and that measures in the mean time might be taken to prevent embarra.s.sments, in case of the arrival of bills after that period, great surprise has been expressed, that Congress should take such a step without previously informing the Court of their intentions, and obtaining its approbation of the measure. Congress will therefore judge of the propriety of disposing of any bills, that may remain unsold, until it is fully ascertained, that they will be punctually paid. Mr Jay, now at Madrid, where the death of his child, and the consequent distresses of his family, detain him a few days, will undoubtedly transmit more ample intelligence on this subject, with the various papers in his possession necessary to explain it. This Court has been obliged to make considerable loans, for their own current expenses, the nature of which I hope to be able to explain in a future letter. It has lately obtained seven millions, five hundred thousand current dollars, in France and elsewhere. The loan is for nine millions, and from the nature of it will create a temporary paper circulation to that amount in this kingdom. I shall transmit to Congress, as soon as it becomes public, a full detail of its operations.

Mr c.u.mberland, whom I mentioned in my last, and whose name you will find in all the European gazettes, is still at Madrid, from whence he has lately had permission to send a courier to London, but as the Spanish Minister has engaged to impart any serious proposals he may make, and as the French Amba.s.sador expresses no uneasiness from the residence of this gentleman in Spain, although this circ.u.mstance at this crisis is extraordinary, we cannot presume there can be solid ground for apprehension. Considerable revolutions, however, have happened in the system of politics of this country, ever since the accession of the House of Bourbon, and where governments are often more influenced by the counsels, and sometimes the caprices of individuals, than from regard to the real and permanent interest of a nation, there is always something to fear. Congress judging from the a.s.surances of the Minister, and the King's character, which is remarkable for steadiness, on the one part, and from the circ.u.mstance of Mr c.u.mberland's residence here, and the constant endeavors of our enemies by every insidious art to misrepresent our situation, on the other, will be best able to draw conclusions from the whole.

The treaty proposed by Russia to the neutral maritime powers, to secure their commerce, and protect their navigation, has been or will be acceded to by Sweden, Denmark, the Hanseatic towns, and Holland, and a Russian squadron is expected in the Channel daily. Portugal, it is said, influenced by England, will not accede to this treaty, which will put a stop to the piratical conduct of that country. France and Spain exclaim, against the partiality of Portugal to Great Britain, and I have been informed, but I do not pretend to vouch for the authenticity of the intelligence, that strong representations have been made to that Court, either to shut its ports against the armed vessels of the nations at war, or to take a part in it. The French Minister to that Court said something to the same purpose to me at Madrid, on his way to Lisbon. The English at present sell their prizes there, without the formality of condemnation.

The Count d'Estaing is now here, and on every occasion manifests the strongest attachment to the United States and their interests. The general opinion gives him the command of a part, if not the whole of the combined fleets, which amount to thirty six sail of the line, now at sea, commanded by M. Cordova. The English fleet under Geary, is also cruizing between Ushant and Cape St Vincent, to prevent the junction of the ships from Brest and Ferrol with the Spanish Admiral, and to protect their outward end homeward bound convoys, and to intercept those of the allies.

I had written thus far, when a courier arrived with the important news of the combined fleets having fallen in with, and taken fiftysix sail out of sixty, destined to the East and West Indies, Madeira and Quebec. I have requested Mr Harrison at Cadiz to enclose to the Committee a list of the prizes, and the nature of their cargoes, as it has not yet been received here. This will be severely felt in England, and will occasion more clamor against the Ministry, than all their naval losses since the war. Mr Jay has heard from Congress but once since we have been in Spain, and very seldom from our other correspondents, the last letters from Paris, mention that Messrs Franklin, Adams, and Dana, were well, and that Mr Adams was going to Holland.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

_P. S._ Since sending off a copy of the preceding letter, I have the pleasure to inform you, that the gentleman expected by the Minister has arrived, and proves to be Don Diego Gardoqui, who is already known by his former correspondence with America. Our affairs are once more in train, some bills have been accepted since his arrival, but nothing certain has been as yet determined, and indeed I fear the Court is too much pressed for money, to do anything considerable for us here in that way. Probably this gentleman will be sent to America, by whom we shall have an opportunity, I hope, of conveying the final determination of the Court with respect to our affairs. The navigation of the Mississippi appears to be the great, and if we can credit the a.s.sertions of men in power, the sole obstacle.

Mr c.u.mberland has been here, and is expected again with his family in a few days. I have been informed, that he has offered on the part of Great Britain, to restore to Spain what they lost by the treaty of Paris, and has been permitted to reside at this Court in expectation of being authorised to make further concessions, and indeed on no other principle can I account for his residence here at this crisis. I mentioned in my letter of the 22d ult., that representations had been made to the Court of Portugal, either to shut its ports against the armed vessels of all nations at war, or take a part in it. I have the honor to inform you, that the above Court has consented to the first of these propositions, although this is not yet public. Another vessel has arrived at Nantes from Philadelphia, by which neither Mr Jay nor myself have received any letters. The Russian fleet, consisting of fifteen sail of the line, and four frigates, is arrived in England.

Admiral Geary returned to Spithead the 19th ult. This fleet, it is said, will soon be sent to sea, although he had upwards of two thousand sick when he returned to port. Stocks fell considerably in England when the news arrived of the loss of the convoy beforementioned.

A fleet of seven sail of the line sailed from Ferrol the 22d ult. to convoy off the coast a fleet of transports for the French islands, and probably to cruise to intercept the homeward and outward bound fleets of the enemy. This circ.u.mstance joined to the late loss of the convoy, has raised insurance prodigiously in London. The Parliament does not meet until the 28th of September.

W. C.

TO THE COMMITTEE OF FOREIGN AFFAIRS.

St Ildefonso, September 9th, 1780.

Gentlemen,

I did myself the honor of writing to you the 6th instant, via Cadiz, Bilboa, and France, informing you that the person mentioned in my letters of last month, as chosen by the Minister to succeed M.

Miralles, had arrived here, and proves to be M. James Gardoqui, and that since his arrival, our affairs are once more in train. I also mentioned that the Ministry were negotiating loans, to answer extraordinary expenses. I expected to have been able to send the Committee a full account of the nature of these loans, as I founded my hopes of the Court's paying the bills drawn on Mr Jay, by means of the supplies obtained in this way. I am therefore very sorry to inform the Committee, that the success of the most considerable has not answered the expectations of the Ministers, and what is worse, they impute its failure to the interference of M. Necker and others, influenced by that Minister, which has created a soreness, that for the moment must be disagreeable to our ally, and may be disadvantageous to us, unless more important considerations obviate the ill effects to be apprehended from such disappointment, and the personal disgust and resentment consequent thereof.

A person with whom I am well acquainted, is the projector of the loan abovementioned, and although for near three months I have known that such a measure was in agitation, I was not able to discover the plan, it having been preserved with great secrecy, in order to secure its successful and complete operation. As this measure is so far important to Congress, as it may influence the conduct of the Court with respect to money matters, and affect the credit of the nation in future, on which all the vigor of military operations in a great measure depends, I will endeavor to give the outlines of the money negotiation to the Committee, and will forward the plan and the King's ordinance thereon as soon as I receive them.

The original design of this loan was to procure nine millions of dollars, or thirtysix millions of livres in four months, and possibly to enlarge the sum according to exigencies. The projector was to receive ten per cent for expenses and profit, which he was at liberty to divide as he thought proper with the original lenders. To these, I think, he gave three, or three and a half per cent for the use of their money for four months, which money they were to remit in bills of exchange on Spain, and to redraw at the end of four months for their princ.i.p.al and interest. The great secret of the operation is, that government instead of repaying their bills in specie, issues paper to repay them, the credit of which is guarantied by the Crown and the different Chambers or Councils of the Kingdom, viz of Castile, &c. &c. This paper bears an interest of four per cent. A _cedula_, or royal ordinance, will be published the 20th or 21st of this month, which gives it currency, and inflicts severe penalties on any one who refuses it as a legal payment. M. Necker did not discover the latter part of the scheme until large sums had been remitted from France, and I suppose, fearing that its operation would be complete before his representations of what he thought its evil tendency, could be attended to here, he immediately gave orders not to receive the bills of exchange of the houses concerned in this measure at the _Caisse Royale_ in France. Besides, the house of Gerardot, Haller & Co. one of the most considerable in Europe, and of which he was once the head, and his brother is still a partner, wrote circular letters to all parts of Europe discrediting the loan.

The consequence has been, that the persons in France and elsewhere, whose bills were refused at the _Caisse Royale_ have been pushed here so hard by their creditors, that the Spanish government has been obliged to make considerable remittances to support their credit, that further advances of money have been stopped, and that bills of exchange on Spain have sold at a loss of one and one and a half per cent. This has irritated the merchants here, and perhaps we may be the innocent victims. For I am persuaded, that Spain, without obtaining it by loans, has not money in Europe to afford us considerable aids, how great soever her inclination may be to a.s.sist us, and I think the Committee will be of the same opinion, on reading the information I gave Mr Jay on the subject of the revenues of this country, in consequence of his instructions to me at Cadiz.

I shall be happy to have it in my power to inform the Committee, that my apprehensions have been ill grounded.

The fate of our bills must soon be determined. More than forty thousand dollars have been presented, of which the amount of about fourteen thousand have been accepted by order of the Minister. The Count d'Estaing will leave this in a few days, and go to Cadiz; by the time he can arrive at that port, the whole of the combined fleet will be a.s.sembled; thirtysix sail are now at Cadiz, seven on a cruise, and two of a hundred and one hundred and ten guns are on their voyage from Brest. The Count will urge a vigorous and decisive conduct, and seems to enjoy the King's esteem, and the good will of most of the Ministers and Courtiers.

The English emissary, Mr c.u.mberland, is still at Madrid, and is permitted to receive from and send couriers to London. The conduct of the Court appears unaccountable, and I cannot persuade myself, that it can be agreeable to France, although the Count de Montmorin frequently a.s.sures me, that we need not have any inquietude on account of the gentleman's residence. He no doubt, however, endeavors to insinuate many things to our disadvantage, and makes propositions to alienate Spain from the alliance with France, and from supporting the United States. Those about him are perpetually circulating bad news from America, and a.s.sert with confidence, that several States and many individuals in others, are negotiating to make their peace with Great Britain. Spain may possibly be amusing his employers, as he is employed to amuse the Spanish Ministry.

The treaty for an armed neutrality was signed by Sweden the 4th of August; Denmark had not signed it the 8th of the same month, but there is no doubt she will. The English party in Holland opposed and r.e.t.a.r.ded it there as long as possible, and finally clogged it with such conditions as they hope will prostrate the negotiation; for instance, they propose to the contracting powers, to guaranty all their possessions in Europe, Asia, and America, but as the States have gone so far, they will scarce recede, should this article be refused by the others. The eyes of Europe are anxiously turned to America and the West Indies; the friends of liberty hope everything from our union and perseverance, and the expectations of our enemies are founded on the reverse. Neither Mr Jay nor myself have received letters from Congress since we left America, except one from the Committee, enclosing the bills of exchange, so that we are without intelligence, without money, or the certainty of conveying to Congress as regularly as we wish, the information necessary for them to receive, which will plead my apology with the Committee for the repet.i.tions they will meet in this letter of what several other letters contain.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

_P. S._ The declaration of Portugal, shutting their ports against the armed vessels of the nations at war, which I mentioned in a letter of the 6th, has not yet been made public. It is supposed that the present Parliament will be dissolved and a new one called, while the influence of the present Ministry continues high. Considering the scarcity of cash in this country, and the present situation of affairs, perhaps Congress will do well to stop drawing on Mr Jay, until they receive information that their bills will be paid punctually. There appears no forwardness in this Court to enter into treaty; the navigation of the Mississippi is the great obstacle; the situation of America will guide the determinations of Congress, and I hope it will be such as to enable them to preserve the rights of all the States. Negotiations will, probably, be set on foot this winter, and it is likely this Court will be the theatre of them. As Spain has as yet taken no decided part in our revolution, England will rather choose to apply to this Court, and keep up the old idea of restoring peace by her mediation, than that of Versailles. Hints have been given, that it would be more convenient for Spain to furnish the States with money in America than here, but as they seem to think that America has not proposed an equivalent for what they demand, I am afraid a.s.sistance will be given very faintly.

W. C.

TO THE COMMITTEE OF FOREIGN AFFAIRS.

St Ildefonso, September 25th, 1780.

Gentlemen,

I did myself the honor of addressing you the 6th and 9th instant, and in the latter expressed an apprehension, that Congress would not receive the pecuniary aid they expected in this country. I am now sorry to inform you, that on the 13th, Mr Jay was told by order of the Minister, that their own exigencies would not permit the King to provide funds for the payment of more of the bills than had been already accepted. I make no reflections on this event, and hope the Committee will suspend theirs, until Congress shall have received from Mr Jay, a relation of all that has pa.s.sed here since the month of June last, with the papers necessary to elucidate it. In a day or two after the above information, his Majesty was pleased to offer his responsibility to facilitate a loan for one hundred and fifty thousand dollars in favor of the United States, and to promise some clothing, &c. &c.

On the 23d, Mr Jay had a long conference with the Count de Florida Blanca, the particulars of which I immediately reduced to writing, as I have done with respect to others which preceded this, copies of the most material parts of which Mr Jay will, probably, forward to Congress with his other despatches. In this conference, the Count spoke with much pleasure of a resolution of Congress, permitting the exportation of flour, for the use of the Spanish fleets and armies in the West Indies, as also of measures taken by them to make a diversion to the southward, to facilitate their operations against Pensacola, &c. &c. He said to Mr Jay, that the King had directed him to convey his thanks to Congress for those marks of their friendly disposition, and gave the strongest a.s.surances, that his Majesty would never consent to a pacification, which did not include the interests of America, declaring at the same time, that the negotiations for peace were more remote than ever, although, as he observed, the King had been offered all he could desire from England, in order to induce him to a separate peace. He informed Mr Jay he had received intelligence, that Great Britain once more proposed to send Commissioners to treat with Congress, that this measure was under the consideration of the Privy Council, and would, probably, be adopted.

I seize the earliest opportunity of conveying to the Committee thus much of the conference, as most important for Congress to know, to which I add, that the Minister promised to take immediate measures for putting it in the power of Mr Jay, to evidence and avail himself of the responsibility of the King, and forwarding from Cadiz clothing for ten regiments, for the use of the American army. In the course of this conference, the Count de Florida Blanca a.s.serted with warmth, that the King would never relinquish the navigation of the Mississippi, and the Ministry regarded the exclusive right to it as the princ.i.p.al advantage Spain would obtain by the war. This being the bar to the treaty, it seems not improbable, that this Court will not be in a hurry to treat with us, but rather trust to her interest in a general Congress for peace to obtain her favorite objects, preserving, in the meantime, such a line of conduct, as will enable her, in some measure, to be a mediator in it, with which idea she has been, and is flattered by England.

Mr c.u.mberland, whom I have frequently mentioned in former letters, still remains at Madrid. The Abbe Hussey, his coadjutor, has just received a pa.s.sport to go to Lisbon, from whence he will, probably, embark for London, and return with the ultimatum of that Court, and intelligence for the Spanish Minister, for it is not improbable, he may be a better spy than negotiator. All this, however, is conjecture.

In all probability, great efforts will be made next campaign in America, if the war continues, as we are told it will. The great objects of it are in that part of the world. France is engaged at all hazards to support our independence, and will do it, and Spain is desirous of possessing the entire navigation of the Gulf of Mexico. I take the liberty of repeating these reflections to the Committee, as they arise from conversations on this subject with persons in a situation to be well informed.

The different powers at war will, however, find some difficulty to procure money. England has not completed her last loans. France has begun to tax, and must continue to do so, notwithstanding the great economy of their Minister of Finances. The last operations of this Court to procure money, of which I gave the Committee a sketch in my last letter, and the state of the revenues, which I gave Mr Jay in my answer to his instructions, will show them the wants of this country.

The interference of M. Necker in the operation beforementioned, deprived this Court of near two millions of _pesos_, and greatly irritated the Ministry. I hope, however, their resentments have subsided. This failure, they give as one reason for not being able to advance the money we expected, to enable Mr Jay to pay the bills drawn on him by Congress. Mr Jay has, however, at all hazards, accepted those which have been presented, and is taking every step in his power to provide money to pay them, as also those that may be disposed of in America, previous to the advice he has given Congress on this head.

The English Ministry are likely to have a large majority in the new Parliament, which is generally the case in time of war. The great neutral maritime powers of Europe, seem to regard the present war as an event favorable to the augmentation of their commerce, and will, probably, do so, until one or the other of the contending parties engaged in it appear to have a decided superiority. Portugal seems better disposed to the allies than heretofore. This change is, probably, the result of fear, more than of affection. The combined fleet at Cadiz, consists of fortythree sail of the line, besides frigates, &c. &c. The Count d'Estaing commands the French part of the fleet, and the whole is in readiness to put to sea. During his residence at this Court I was frequently with him, and he professes the same ardent desire to serve us as ever.

I cannot forbear mentioning to the Committee, my sense of the friendly and polite conduct of the Count de Montmorin to me ever since my arrival here, nor can I conclude, without remarking the good effects that our union, vigor, and perseverance have had in Europe. A continuance of these will render us respectable to our enemies, and of consequence to our friends.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

TO THE COMMITTEE OF FOREIGN AFFAIRS.

Madrid, October 15th, 1780.