The Diplomatic Correspondence of the American Revolution Volume I Part 6

This kingdom (France) has been in bad credit, from the villainy of a late Comptroller General, as it is said, one Abbe Terrai, against whose administration the severest things have been uttered and written. He was succeeded by the much esteemed Mons. Turgot, and stocks rose, and a commission was given to a banker (a correspondent of mine in Amsterdam) to negotiate a loan, but the dismission of Mons.

Turgot, and the indifferent opinion which monied men at least had of his successor, Mons. Clugny, prevented the loan, and lowered the stocks. Mons. Clugny died last week, and is succeeded ostensibly by one Monsieur Tabourou; I say ostensibly, for M. Necker, a noted Protestant banker, is joined with him as Intendant of the Treasury.

This raised stocks immediately, and I am told they have already risen ten per cent. This is the most politic appointment that could have been made, and it deserves our notice, that where a man has it in his power to be of public service, his principles of religion are not a sufficient obstacle to hinder his promotion even in France. This will probably enable this kingdom to borrow money, which from all appearances will be soon wanted. Spain, from the punctuality of its payments of interest, and its well known treasures, is in high credit in Holland. Denmark borrows at four per cent, Sweden at the same; the emperor of Germany, from the security of his hereditary dominions, and the empress of Russia, from her having lately paid part of the large sum she borrowed in the Turkish wars, are both of them in good credit.

The credit of Great Britain, though it has not fallen, yet it is in a critical situation with those foreseeing people, who, on receiving the news of the action on Long Island, which raised stocks a trifle in England, began immediately to sell out.

Not a power in Europe, the king of Prussia excepted, can go to war without borrowing money of Holland to a greater or less amount, and whilst so many borrowers are in its neighborhood, whose estates, as I may say, are settled and known, it is not to be expected Holland will be fond of lending money to the United States of North America, though we should offer higher interest. To offer a large interest might be tempting, but it would be very ruinous to us, and I conceive it will never be thought prudent to permit higher than five per cent interest in the States of North America, and this is but one per cent more than is given in Europe.

This view leads me again to reflect, as I constantly do, with the utmost grief, on the unaccountable delay of proper authority announcing the Independency of the United States, and proposing terms of alliance and friendship with France and Spain. This I am confident would at once remove this and many other difficulties; would put our affairs on the most established and respectable footing, and oblige Great Britain herself to acknowledge our Independency and court our friendship. On such powers being received and presented, these kingdoms, I have no doubt, would become our guaranty for the money we want, and the produce of our country will be wanted for the interest, and even the princ.i.p.al, as fast as we can transport it hither. But as no such powers and instructions are received, and as it is possible you mean not to send any, I will mention a few thoughts on another plan.

You are not in want of money, but the effects of money in the manufactures of Europe. For these the Colonies or United States must now have a demand to the amount of some millions sterling. These manufactures are to be had princ.i.p.ally in France and Holland. As to the latter, they have not at present, and are resolved never to have, any peculiar connexion with, or friendship for, any power, further than their commerce is served by it, but that is not the ruling pa.s.sion of the former. The desire of humbling their old rival and hereditary enemy, and aggrandizing their monarchy, are predominant, and never was there a more favorable opportunity than the present,--so favorable is it, that were the funds of this kingdom in a little better situation, and were they confident that the United States would abide by their Independency, not a moment's time would be lost in declaring war, even though you had made no application direct.

Whatever part this kingdom takes will be pursued by the Court of Madrid. Would this Court give a credit even to private merchants, it would answer the same purpose as a loan; as for instance, the United Colonies want about three millions value of manufactures annually (it has heretofore been a little more) from Europe. If this Court will give a credit to that amount to any body of men in the kingdom, that company may engage to pay the Court the same amount in Continental bills within a limited time, this company may send to America supplies to that amount, as the Congress shall order, such goods as are wanted either for the army or navy; the Congress will instantly deposit their bills for the amount; the residue may be sold at a stated advance for Continental bills, the whole of the amount immediately put on interest to this Court; this will be the calling in of such an amount of the bills, and of course give the greater currency to the whole. Meantime, this Court must become interested to have the commerce free, by which alone remittances can be made. This is but a sudden thought, recommended to you for consideration, if deemed worthy. That something may be effected in this way I can have no doubt, while I have this most unequivocal evidence. I am now credited to the amount of all the supplies for thirty thousand men, a train of artillery, amounting to more than two hundred pieces of bra.s.s cannon, ammunition, &c. &c.

which must be of near half a million sterling, _not ostensibly by the Court, but by a private company_. At the same time other companies, as well as individuals, after offering any loan or credit I should ask, always brought in sooner or later the condition of having my bills endorsed by some banker or person of credit; where you are sensible in my situation the affair ended; though in several instances I had the most flattering encouragement, and expected most a.s.suredly no security would be required; but that this particular house should be able and willing to advance this prodigious sum at once, and without security, is no way surprising, but perfectly consistent with what I have all along a.s.serted.

The most effectual card now played by the British Amba.s.sador is, a.s.serting that an accommodation will soon take place, and by some means or other conjecturing my want of powers by my not appearing at Court, he is bold in this a.s.sertion, and I find it the greatest difficulty I have to encounter. But I will not enter on a subject, which has well nigh distracted me, and embarra.s.sed and disheartened in a greater or less degree every friend of America. The late conduct of the Court of Spain respecting Captain Lee, whose case I mentioned before, is a striking proof of what I have so positively a.s.serted of the good disposition of both these Courts. They dismissed the complaint against him, afforded him protection, with a.s.surances of every a.s.sistance he might need, declaring publicly that their ports were equally free for Americans as for Britons. I have besides these overt acts still more convincing proofs, that the moment your application is made every thing will be set in proper motion.

I now discuss a subject which has given, and still continues to give me as much anxiety as I can struggle with, and mention another, a little new but indeed somewhat connected with it; it is the equipping of a number of American ships of war in the ports of France.

Considering the price of duck, cordage, ordnance, and other military stores in America, they may be built much cheaper here. This is not the sole advantage, they may carry over stores of every kind in safety, as being French bottoms, ostensibly at least, all the brave and ingenious in the Marine Department in this kingdom would become adventurers in person, or in purse and influence in such a scheme; and I speak on good grounds, when I say, that in three months after receiving your orders I can have ten ships of at least thirty six guns each, at your service, independent of a.s.sistance immediately from Government; so much attention is paid to the American cause by all persons of consequence in this kingdom. The honorable Congress must I conceive either continue emitting bills or borrow money, and I submit whether it be not better to borrow of foreign states than individuals, in the present situation of American affairs; I am convinced you may borrow five or six millions of Holland, on France becoming your security. This I am confident may be obtained on application to this Court and Spain, and that on these principles they can by no means be willing to permit the Colonies to return to their former subjection to Great Britain, armed as both countries are. Their possessions in America must lie at the mercy of Great Britain, on such an event as a reconciliation with the Colonies. The Colonies being in want of the manufactures of Europe, of this kingdom in particular, this sum would, a princ.i.p.al part of it, rest in France and give a great spring to their manufactures, and afford them the advantage of antic.i.p.ating others in American commerce. These are important objects, and I have no doubt would be considered of consequence sufficient for them to risk such a credit. Rich individuals offer to supply any quant.i.ty of goods or stores on such security, and I believe the latter would do considerable, were they only a.s.sured of five per cent interest on their debts after they become due. But I submit the whole to the mature consideration of the honorable Congress, and am, &c.

SILAS DEANE.

TO THE COMMITTEE OF SECRET CORRESPONDENCE.

Paris, 3d December, 1776.

Gentlemen,

My letters from Bordeaux and since, to which I have received no reply, will give you my situation, but lest some of them fail, I will briefly in this give you the history of my proceedings. Immediately on my arrival, I sent forward your bills, a large part of which were protested, and intelligence arriving of the loss of Canada, and that Carleton was even on the frontiers of the Colonies, and at the same time the formidable armament gone and going over, made every one here give up the Colonies as subdued. To have tried for a credit under such circ.u.mstances would have been worse than useless; it would have been mortifying, as a refusal must have been the consequence. Mr Delap generously offered to advance five or six thousand pounds, but when I considered it was already more than four months since you began to prepare for remitting, and that next to nothing was received, I really found myself embarra.s.sed, and hoping every day for some relief, I suspended engaging, and came up to Paris, having previously sent Mr Morris's letter to his different correspondents, not one of which appeared inclinable to be concerned in a credit.

I sent ---- to procure the goods in Amsterdam, if to be had, but found our credit worse there than in France. A gentleman here offered me a credit for a million of livres, but it was, when explained, on the following conditions. I must produce direct authority from the Congress, with their promise of interest; all American vessels must be sent to his address; and until this could be secured him I must provide a credit, or in other words a security in Europe. Here you are sensible my negotiation ended. I then contracted for the supplies of the army, and crowded into the contract as large a proportion of woollens as I well could, sensible that with them you might do something, and hoping your remittances might still arrive, or some intelligence of the situation of your affairs, for I thought I judged rightly, that if in six or seven months you were unable to send out one third the remittances, the returns must be equally difficult. On this ground I have been anxiously waiting to hear something from you.

Meantime I shipped forty tons of saltpetre, two hundred thousand pounds of powder, via Martinique, one hundred barrels via Amsterdam.

The late affairs at Long Island, of which we had intelligence in October, and the burning of New York, the report of Carleton's having crossed the lakes, and that you were negotiating, has absolutely ruined our credit with the greater part of individuals; and finding so little prospect of completing the Indian goods, I have attended the closer to despatch the supplies for the army, for which I had obtained a credit ostensibly from a private person, but really from a higher source. Meantime the monies remitted are in Mr Delap's hands, except what I have drawn out for my private expenses, for payment of the saltpetre, for the fitting out of Captain Morgan, and for the equipment of certain officers going to America. For the 200,000 weight of powder Mr Delap is my surety, consequently should he receive nothing more from you he will have no considerable balance in his hands. Could I have received but one half the amount in any season, I would have ventured on the goods long before this, but to what purpose would it have been, could I have been credited the amount, if you were unable to remit? The same obstruction must subsist against their arrival. I am however at last promised the goods on credit by the same way as the stores have been procured, and hope to ship them this month; but some of the articles are not manufactured any where in Europe except Great Britain, and others must be subst.i.tuted in the best manner I can.

I have written to Mr Delap to send you his account, also to send the particulars to me, which I will transmit as soon as received. The goods may be expected in the month of February; meantime I pray you, not on this account only, but on others, to exert yourselves in remitting so much as to support the credit of the Continent, for which I am now engaged to a very great amount. Tobacco, rice, flour, indigo, peltry, oil, whale fins, flaxseed, spermaceti, masts, spars, &c. are in good demand. Tobacco at 9 to 10 sous per lb. and rising, free of duty or expense, save commission. Rice 30 livres per cwt. Flour 22 to 24 livres.

I am, most respectfully, &c.

SILAS DEANE.

_P. S._ When I say tobacco is free of duty, I mean if sold to the Farmers-General directly; on other conditions it is inadmissible at any rate.

TO JOHN JAY.

Paris, 3d December, 1776.

Dear Jay,

If my letters arrive safe they will give you some idea of my situation. Without intelligence, without orders, and without remittances, yet boldly plunging into contracts, engagements, and negotiations, hourly hoping that something will arrive from America.

By General Coudray I send 30,000 fusils, 200 pieces of bra.s.s cannon, 30 mortars, 4000 tents and clothing for 30,000 men, with 200 tons of gun powder, lead, b.a.l.l.s, &c. &c. by which you may judge we have some friends here. A war in Europe is inevitable. The eyes of all are on you, and the fear of your giving up or accommodating is the greatest obstacle I have to contend with. Mons. Beaumarchais has been my Minister in effect, as this Court is extremely cautious, and I now advise you to attend carefully to the articles sent you. I could not examine them here. I was promised they should be good and at the lowest prices, and that from persons in such station, that had I hesitated it might have ruined my affairs. But as in so large a contract there is room for imposition, my advice is that you send back to me samples of the articles sent you. Cannon, powder, mortars, &c.

are articles known; but send clothes, the fusils, &c. by which any imposition may be detected. Large remittances are necessary for your credit, and the enormous price of tobacco, of rice, of flour, and many other articles, gives you an opportunity of making your remittances to very great advantage. 20,000 hogsheads of tobacco are wanted immediately for this kingdom, and more for other parts of Europe.

I have written you on several subjects, some of which I will attempt briefly to recapitulate. The destruction of the Newfoundland fishery may be effected, by two or three of your frigates sent there early in February, and by that means a fatal blow given to Great Britain, I mean by destroying the stages, boats, &c. and by bringing away the people left there as prisoners. Glasgow in Scotland may be plundered and burnt with ease, as may Liverpool, by two or three frigates, which may find a shelter and protection in the ports of France and Spain afterwards. Blank commissions are wanted here to cruise under your flag against the British commerce. This is a capital stroke and must bring on a war. Hasten them out I pray you. France and Spain are friendly, and you will greatly oblige the latter by seizing the Portuguese commerce whenever it is found. I have had overtures from the king of Prussia in the commercial way, and have sent a person of great confidence to his Court with letters of introduction from his Agent here, with whom I am on the best terms. A loan may be obtained for any sums at five per cent interest, perhaps less, if you make punctual remittances for the sums now advanced. The Western Lands ought to be held up to view as an encouragement for our soldiers, especially foreigners, and are a good fund to raise money on. You may, if you judge proper, have any number of German and Swiss troops; they have been offered me, but you know I have no powers to treat. A number of frigates may be purchased at Leghorn, the Grand Duke of Tuscany being zealously in favor of America, and doing all in his power to encourage its commerce. Troubles are rising in Ireland, and with a little a.s.sistance much work may be cut out for Great Britain, by sending from hence a few priests, a little money, and plenty of arms.

_Omnia tentanda_ is my motto, therefore I hint the playing of their own game on them, by spiriting up the Caribs in St Vincents, and the Negroes in Jamaica, to revolt.

On all these subjects I have written to you. Also on various particulars of commerce. Our vessels have more liberty in the ports of France, and Spain, and Tuscany, than the vessels of any other nation, and that openly. I presented the Declaration of Independence to this Court, after indeed it had become an old story in every part of Europe; it was well received, but as you say you have articles of alliance under consideration, any resolution must be deferred until we know what they are. The want of intelligence has more than once well nigh ruined my affairs; pray be more attentive to this important subject, or drop at once all thoughts of a foreign connexion.

Had I ten ships here I could fill them all with pa.s.sengers for America. I hope the officers sent will be agreeable; they were recommended by the Ministry here, and are at this instant really in their army, but this must be a secret. Do you want heavy iron cannon, sea officers of distinction, or ships? Your special orders will enable me to procure them. For the situation of affairs in England I refer you to Mr Rogers, Aid de Camp to Mons. du Coudray. I have presented a number of memoirs, which have been very favorably received, and the last by his Majesty, but my being wholly dest.i.tute of other than accidental and gratuitous a.s.sistance will not permit my sending you copies. Indeed I was obliged to make them so as to explain the rise, the nature, and the progress of the dispute. I have been a.s.sured by the Ministers, that I have thrown much light on the subject, and have obviated many difficulties, but his Majesty is not of the disposition of his great grandfather Louis 14th. If he were, England would soon be ruined. Do not forget or omit sending me blank commissions for privateers; under these, infinite damage may be done to the British commerce, and as the prizes must be sent to you for condemnation the eventual profits will remain with you.

Doctor Bancroft has been of very great service to me; no man has better intelligence in England in my opinion, but it costs something.

The following articles have been shewn to me; they have been seen by both the courts of France and Spain, and I send them to you for speculation.

1st. The thirteen United Colonies, now known by the name of the thirteen United States of North America, shall be acknowledged by France and Spain, and treated with as Independent States, and as such shall be guarantied in the possession of all that part of the continent of North America, which by the last treaty of peace was ceded and confirmed to the crown of Great Britain.

2dly. The United States shall guaranty and confirm to the crowns of France and Spain, all and singular their possessions and claims in every other part of America, whether north or south of the equator, and of the Islands possessed by them in the American seas.

3dly. Should France or Spain, either or both of them, possess themselves of the Islands in the West Indies now in possession of the crown of Great Britain (as an indemnity for the injuries sustained in the last war, in consequence of its being commenced on the part of Great Britain in violation of the laws of nations,) the United Colonies shall a.s.sist the said Powers in obtaining such satisfaction, and guaranty and confirm to them the possession of such acquisitions.

4thly. The fisheries on the banks of Newfoundland, of Cape Breton, and parts adjacent, commonly known and called by the name of the Cod Fishery, shall be equally free to the subjects of France, Spain, and the United States respectively, and they shall mutually engage to protect and defend each other in such commerce.

5thly. The more effectually to preserve this alliance, and to obtain the great object, it shall be agreed, that every and any British ship or vessel found or met with on the coasts of North America, of South America, or of the Islands adjacent, and belonging thereto, and within a certain degree or distance to be agreed on, shall be forever hereafter considered as lawful prize to any of the subjects of France, Spain, or the United Colonies, and treated as such, as well in peace as in war, nor shall France, Spain, or the United Colonies ever hereafter admit British ships into any of their ports in America, North and South, or the Islands adjacent. This article never to be altered or dispensed with, but only by and with the consent of each of the three contracting States.

6thly. During the present war between the United States and Great Britain, France and Spain shall send into North America, and support there, a fleet to defend and protect the coasts and the commerce of the United States, in consequence of which if the possessions of France or Spain should be attacked in America by Great Britain or her allies, the United States will afford them all the aid and a.s.sistance in their power.

7thly. No peace or accommodation shall be made with Great Britain to the infringement or violation of any one of these articles.[8]

I am, with the utmost impatience to hear from you, Dear Sir, yours, &c.

SILAS DEANE.

FOOTNOTES:

[8] From the manner in which Mr Deane introduces these articles, it does not appear in what source they originated. From the following sketch, which was prepared some time before this letter was written to Mr Jay, it is evident that the project was first proposed by Mr Deane himself.

"Outline of a Treaty between France and Spain and the United States, drawn up by Silas Deane, and presented to the Count Vergennes in his private capacity, Nov 23, 1776.

"1. Independence to be recognized.

"2. The United States to guaranty and confirm to France and Spain all their possessions in North America and the West India Islands.

"3. Should France or Spain gain possession of any of the West India Islands, (as an indemnity for the injuries sustained by them in the last war, in consequence of its being commenced on the part of Great Britain, in violation of the laws of nations,) the United States to a.s.sist the said powers in gaining satisfaction, and in retaining possession of such acquisitions.

"4. The fisheries on the Banks of Newfoundland to be enjoyed equally between the three contracting powers, to the exclusion of all other nations.

"5. The regulations of commerce to be reciprocal.