The Diplomatic Correspondence of the American Revolution, Vol. 01

by Unknown

TO THE PRESIDENT OF CONGRESS.

Philadelphia, 12th October, 1778.

Sir,

I beg leave to lay before Congress a few observations on the extracts from Mr Arthur Lee's letter, dated Paris, June 1st, 1778, read in Congress the 3d instant, which were ordered to be communicated to me. Mr Lee begins by saying that, "M. Monthieu's papers were sent to show you the demands that are made upon us, and the grounds of them; you will see that they are accounts, which Mr Deane ought to have settled."

Not having seen the accounts or papers said to have been sent, I can only reply generally by informing Congress, that I contracted with M. Monthieu (nearly at the time that I contracted with Mons. Beaumarchais for the stores) to procure ships to transport them over to America;[14] the rate, I was told in Paris and elsewhere, was as low as could be then procured in France; it has risen since that time. The ships were to have been despatched in a reasonable time to and from America. Mons. Beaumarchais was my surety. The difficulty met with in getting away the stores was such, that the last of the ships did not sail from Marseilles until in September, 1777. The delay of near twelve months of some of them in France, and an uncommon delay of all of them, occasioned by repeated counter orders, and fresh obstacles rising in the way of embarking those stores, as well as the unexpected detention of those ships in America, as for instance, of the Amphitrite, from April until the October following, with the capture of them, were circumstances unforeseen and unexpected at the time of making the contract, and entitled M. Monthieu to an equitable consideration over and above the freight stipulated. Before the last ship sailed, therefore, M. Monthieu insisted that some mode for a settlement should be agreed upon; on which Dr Franklin and myself agreed with him to submit the whole to Mons. Chaumont; the submission was made and signed. M. Monthieu, on his return from Marseilles, (to which place he went immediately to embark and send off the remainder of the stores) urged M. Chaumont to undertake it. I did the same; he declined, telling me that he found Mr Lee of so jealous and unquiet a disposition, and so much disposed to abuse every one that he had any concerns with, that he had well nigh resolved never to have any thing more to do with the commissioners, while he was one of them; but as M. Monthieu had other concerns with the commissioners, he thought it best to settle the whole at once, and when the whole was ready for a settlement, if Mr Lee would then desire him to undertake it, he would do it as well to oblige us as M. Monthieu, for whom he had a regard. This put off the settlement for the time.

Mr Lee proceeds to say, "It is this sort of neglect, and studied confusion, that has prevented Mr Adams and myself, after a tedious examination of the papers left with Dr Franklin, from getting any satisfaction as to the expenditures of the public money. All we can find is, that millions have been expended, and almost every thing remains to be paid for."

I am not surprised at any thing of this kind from Mr Lee, nor that Mr John Adams has not joined with him in this letter, though I dare say, that gentleman knows his duty, and has done it, as well to the public as to me. After premising that Mr Lee had in his hands the accounts of all the monies received and paid out on the public account, I will lay before Congress the facts, which he had before him when he wrote this letter, after which Congress will be able to judge whether Mr Lee had any grounds for his representing me as a public defaulter for millions. It is certain, that Mr Lee knew that the total amount of monies received by the commissioners to the time of my leaving Paris,

amounted to	(livres) 3,753,250
And that the balance due Mr Grand, the 27th March, was	293,738	17
And that the whole expenditures to that day consequently was	(livres) 4,046,988	17

In the next place, it will appear, that by much the greater part of this was actually expended and paid out by and with Mr Lee's consent and orders at the time; the whole was well known to him, as he had, from time to time, access to Mr Grand's books, and Mr Grand delivered him copies thereof up to the 27th of March last, by which he had before him an account of every payment that had been made, and I sent him in writing an explanation of every payment that had been made in his absence, or which had not been made by his written order.

The accounts of the particular articles in detail, not being here, I am unable to explain every charge in Mr Grand's account. It is sufficient that Mr Grand's account shows, that the nature of nearly the whole of the expenditures was perfectly well known to Mr Lee, when he wrote the above account of millions expended, and represented he knew not how to show this. I have stated Mr Grand's account in a shorter compass than what it was before, and have brought the different payments for particular objects made to different people into one view, as will be seen in the annexed state or explanation of Mr Grand's account.

I have no design in answering this part of Mr Lee's letter to go farther into the accounts than to show demonstratively, that nothing can be more groundless and unjust, than for him to represent that millions had been profusely expended, and as if he knew not in what manner or to what purpose. The amount of expenditures, until the time of my leaving Paris, was 4,046,988 17 livres, and it appears, as well from the nature of the account, as from the knowledge Mr Lee had of the transactions, that he knew generally of the payment of every livre, and to whom it had been made, having the accounts and the explanation of them in his hands, up to the very day I set out from Paris. The particular application, indeed, of every part, could not be known until the several accounts should be given in. Mr Lee himself signed the orders for much the greater part of the monies to Mr Williams, and the other principal payments, and was well informed of the business which he (Mr Williams) was executing. By this stating of the account it will appear, that the commissioners, for their private expenses, from December, 1776, to 27th March, 1778, for the support and relief of Americans, escaping from prison in England, for the payment of Mons. Dumas, agent in Holland, the sending of expresses, the purchase of a large quantity of shoes, which were sent to Nantes, to be shipped for America, and for several less disbursements, had of Mr Grand only the sum of 244,285 livres, equal to the sum of ten thousand two hundred and sixty one pounds ten shillings sterling, which is of itself a demonstration, that there was no misapplication of the public monies, since Mr Lee has written, that he could not live under three thousand pounds sterling per annum himself. Whether or not extravagant prices were given for any of the articles purchased, will be an after consideration.

Mr Arthur Lee says, "That almost every thing still remains to be paid for."

I really know not what he means. Things once paid for are not to be paid for a second time, and the payments stated above are proved, by Mr Grand's accounts, to have been bona fide made. "Bargains," he says, "of the most extravagant kind, have been made with this Mons. Monthieu and others;" and then he proceeds to give an example. As to the bargains I was concerned in with this man, and with every other person, I totally deny the fact, and the example given is but a mere pretence. I am so confident of the contrary, that I will most cheerfully take every bargain made by me, or with my consent, in Europe, the contract with the Farmers-General excepted, (which was partly political at the time,) on myself, and will be bound to abide the profit or loss, leaving them to be judged of by the ablest merchants in Europe. Mr Lee informs us of one hundred thousand livres given to Mr Hodge, and that the privateer or vessel he bought cost about £3000, or 72000 livres, and adds, "for what purpose the surplus was given to Mr Hodge, how the public came to pay for her refitting, and at length the vessel, and her prize money, made over to Mr Ross and Mr Hodge, without a farthing being brought to public account, rests with Mr Deane or Mr Hodge to explain;" and in a few lines further he says, "you will see my name is not to the contracts;" but he forgets to add,—that he was at Berlin when they were made. What I have already observed upon in Mr Lee's letter, and what I purpose to notice, confirms me in the opinion, which Dr Franklin and some others have for some time had of him, that, from a long indulgence of his jealous and suspicious disposition and habits of mind, he is at last arrived on the very borders of insanity, and that at times he even passes the line; and it gives me pleasure, though it is but a melancholy one, that I can attribute to the misfortunes of his head, what I must otherwise place to a depravity of heart.

Mr Hodge went to Dunkirk, by order of the commissioners. They sent him in consequence of orders from the Secret Committee; he purchased and fitted out two vessels, a fact though forgotten by Mr Lee, known to every one at the time. From what that brave and virtuous young American did and suffered on the occasion, it was the common topic of conversation every where; it raised insurance in England ten per cent for a time. Mr Hodge, to appease the British Ambassador, was sent to the Bastile, and Cunningham, making his cruise round England and Ireland, put into Spain without prize money equal to the repairs he wanted. Mr Hodge was released from his imprisonment, and one of the first things he did, was to give Mr Lee the account of his whole disbursements in writing. Mr Hodge had taken a small interest in the adventure from the first, and proposed following Cunningham into Spain by land, and making a cruise with him. He proposed that Mr Ross and he should purchase the vessel; but as a price could not easily be agreed upon, they proposed to take the vessel as she was, and do the best with her against the common enemy, and to account to Congress therefor. Mr Ross desired that such an agreement should be signed by the commissioners for his security. I know not that it was ever done. I have only to add on this subject, that all the monies received by Mr Hodge amounted to 92,729 livres 18 3, in the whole, and that Mr Hodge rendered us other services besides equipping these two vessels.

Speaking of the contracts, he says, "they were in fact concealed from me with the utmost care, as was every other means of my knowing how these affairs were conducted." I have in reply to relate the following facts, which are easy to be ascertained. Mr Lee, on his return from Berlin, was made acquainted with the contracts; Messrs Holker, (now in Boston) Sabbatier and Desprez repeatedly conferred with Mr Lee on the subject in my presence, and when they brought in their accounts Mr Lee assisted in adjusting them, and signed with us the orders for the payment, as Mr Grand's account and the orders and accounts themselves will show. It is true, the execution of M. Monthieu's contract was not completed, when I left Paris, and therefore his accounts could not be settled. Mr Williams had the oversight of repairing the arms in the magazine at Nantes; he settled his accounts with his workmen monthly; he had a frigate fitting out for the commissioners, 10,000 suits of clothes making up, a number of shirts, shoes, &c. together with the charge of all the stores the commissioners were sending to Nantes to be shipped. Monthly accounts were not to be expected in reason from a man in such a situation; it could not be done if promised, and Mr Williams is a gentleman of too much probity as well as knowledge in business, to promise what he cannot perform. It is not enough to say, that no man in France enjoys a better character for strict honor and probity, both at Court and in the city, than Mons. Chaumont. Justice must add, there is no man enjoys it perhaps so universally through the kingdom, among the merchants, the farmers or husbandmen, and mechanics, in all which branches of business he is constantly speculating. This man is the friend of Dr Franklin; I have the pleasure of knowing him to be mine, and what is more, the friend of my country, on all and in the most trying occasions. I do not wonder that Mr Lee should appear jealous of this gentleman, as well as of every body else, a select few excepted, and very few indeed are those, who escape his jealous suspicions, either in Europe or America. It is a melancholy truth, but justice to the public requires my declaring it, that I never knew Mr Lee, from his first coming to Paris, satisfied with any one person he did business with, whether of a public or private nature, and his dealings, whether for trifles or for things of importance, almost constantly ended in a dispute, sometimes in litigious quarrels.

Mr Lee lived some time in M. Chaumont's house. M. Chaumont knew him perfectly well, and was not reserved in speaking his opinion of him. I am sorry to be thus long on so disagreeable a subject, a subject which I cautiously waived entering on, in my narration to Congress, not choosing to trouble them with matters, which they might deem of a personal nature. I am grieved to have been forced on it at all, and hope never to be obliged to resume it, and as in commercial transactions there are but two sides to an account, and every thing goes to the debt or credit, the folio for profit or loss, so I must solicit that Dr Franklin and the honorable Mr Adams may be directed to see the settlement of all those accounts immediately on my return to Paris, and as there has been a charge made by Mr Lee, of profusion, of extravagant contracts, and the like, that those gentlemen be authorised to submit the accounts, with every allegation of the kind, to the adjustment and determination of gentlemen of ability and character on the spot, and that orders may be given, that whatever sum may be found due from the commissioners may by them be instantly paid into the hands of the banker for Congress, and that in like manner said banker may be ordered to pay whatever may be the balance, to the person in whose favor the same shall be found. By this means the truth will be demonstrated, and justice done, which is all I have ever wished for. Having forgot to mention it in its place, I must be permitted to add here, that the first vessel purchased and fitted out by Mr Hodge was, on the return and imprisonment of Cunningham, detained by order from Court, and a second purchased, in which Cunningham went on his second cruise. The first was put up for sale at Dunkirk, but not disposed of when I left Paris, at least I had not heard of it.

I have the honor to be,

With the most respectful attachment, &c.

SILAS DEANE.

P. S. I have mentioned money paid Mons. Dumas, as part of the aggregate sum of 244,285 livres 13s. 10d. There will be found the sum of 4351 livres 5s. 3d. paid by Messrs Horneca, Fitzeau & Co. to Mons. Dumas, and for other expenses. I fear on a review, that the brevity I aimed at may cause some mistake; it is therefore proper to observe, that but a part of this sum was paid to Mons. Dumas, a part being for other disbursements, independent of which sum the commissioners made other remittances to Mons. Dumas.

FOOTNOTES:

[14] See the articles of agreement, for this purpose, dated 15th October, 1776,—[p. 51], of this volume.

Mr Deane's Observations on Mr Arthur Lee's Letter of June 1st, 1778.

Mr Lee, in his letter of the 1st of June, on which I have made observations, having insinuated many things to the disadvantage of Doctor Franklin's character, as well as to that of Mons. Chaumont and my own; and Mr Izard in those letters, the extracts from which I was favored with by order of Congress, having gone even beyond Mr Lee, and since in his letter of the 28th of June last, speaking of Doctor Franklin and myself, he says,

"There is very little reason to think that any objections however well founded would have made any impression on the interested views of one, or the haughtiness and self-sufficiency of the other."

Afterwards in the same letter speaking of Doctor Franklin he says,

"His abilities are great and his reputation high; removed as he is to so considerable a distance from the observation of his constituents, if he is not guided by principles of virtue and honor, those abilities and that reputation may produce the most mischievous effects. In my conscience I declare to you, that I believe him under no such internal restraints, and God knows that I speak the real unprejudiced sentiments of my heart."

Gratitude as well as justice to that truly great man, to whose friendship and counsel I owe much, oblige me to say on this occasion that I not only believe, but know that this is, to say no more of it, directly the reverse of the character which Dr Franklin has ever sustained, and which he now most eminently supports. It gives me pleasure to reflect on the honors and respect universally paid him by all orders of people in France, and never did I enjoy greater satisfaction, than in being the spectator of the public honors often paid him. A celebrated cause being to be heard before the Parliament of Paris, and the house, and streets leading to it crowded with people, on the appearance of Doctor Franklin, way was made for him in the most respectful manner, and he passed through the crowd to the seat reserved for him, amid the acclamations of the people, an honor seldom paid to their first princes of the blood. When he attended the operas and plays, similar honors were paid him, and I confess I felt a joy and pride, which were pure and honest, though not disinterested; for I considered it an honor to be known to be an American and his friend. What were the sensations of the writers of these letters on such occasions I leave their letters and conduct towards him to speak, and I cannot now express the indignation and grief I feel at finding such a character, represented as the worst that human depravity is capable of exhibiting, and that such a representation should be made by an American in a public character.

In the course of my narrative I mentioned Mr Williams's accounts as being finally settled. I drew my conclusion from his letter to me of the 22d of July last read in Congress. I find the accounts are not finally closed, though Doctor Franklin and Mr Adams have ordered him the payment. Mr Williams informs me he has written to Congress and sent his accounts; the accounts themselves will show that I have not, nor ever had, any private or personal interest in his transactions; at the same time I beg leave to interest myself in what affects this gentleman, because I think I know him to have been a most faithful and useful servant of the public, and every way deserving of the character given him by Dr Franklin and Mr Adams; and as Dr Franklin, from being his uncle, feels a delicacy in writing so fully about him, I therefore pray that this gentleman's accounts may be put into a train for being closed.

I recollect that Mr Lee has mentioned Count Lauragais in his correspondence with Mons. Beaumarchais, and am informed that this gentleman has in his letters been referred to. Count Lauragais is a nobleman, who was born to an immense fortune, the chief of which he has long since dissipated in a wild and I may say in such an eccentric course of life, as hardly has a parallel in France. He has set up at times for a philosopher, a wit, a poet; then as suddenly flew off, and engaged in building, planting, or politics; he was one month for engaging in trade, the next a country gentleman on his farm, the third blazing in the beau monde at Paris; and France being insufficient to afford a variety of scenes suited to equal the restlessness of his genius, he has constantly been shifting them, from Paris to London and from London to Paris. In London he set up for a patriot, and engaged seriously in the disputes and parties of the day, and what was very diverting, sat down for a few weeks to study the laws of England in order to confute Blackstone. His rank, to which his birth entitles him, gives him admittance to court, and the extravagancy of his wit and humor serves to divert and please men in high office, and he consequently at times fancies himself in their secrets. This gentleman knew Mr Lee in London before I arrived in France, and was afterwards often with him at Paris. His character was given me soon after my arrival, and I was put on my guard and warned by the minister, not that he supposed him to have designs unfriendly, either to France or America, but on account of his imprudence, and of his being frequently in London, and with those in the opposition in England, of whom the Court of France were more jealous, and against whom they were equally on their guard, as with the British ministry themselves. As this nobleman's name may be made use of, I cannot dispense with touching lightly on the outlines of a character extremely well known in France and England, and to which some gentlemen in America are no strangers.

I have mentioned the first and principal contract having been made for clothing, with Mr Holker, now agent for France in America. This gentleman was then one of the inspectors general of the manufactures of France, and knowing perfectly well the price and quality of cloth in every part of the kingdom, he undertook, at the request of our mutual friend, Mons. Chaumont, to put us in the way of being supplied at the cheapest rates, and, by joining himself in the written contract, induced his friends, Messrs Sabbatier and Desprez, to engage, which they did; they purchased the cloth at the manufactories, at the first cost, procured it to be made up at the cheapest rate, and the clothes to be transported to Nantes, charging only the prime cost on every thing, and two per cent commissions for their trouble. Mr Holker, after having engaged these men, whose house is a capital one in Paris, and who, from their having for some time supplied a great part of the clothes to the armies of France, were well acquainted with business of that kind, took no farther part in the affair, but that of examining the work and accounts, to see that every thing was performed in the best and cheapest manner. In this I assisted him. I went with him to the workmen, and examined the cloth, the fashion and the economy practised in the work, from which I will venture to assert, that clothes of equal goodness could not be made cheaper, if so cheap, by any other method in France.

Mr Holker, and the other gentlemen, as I have already observed, saw Mr Arthur Lee several times on the subject, until they became so disgusted with a man, who found fault with every thing, without stepping out of his door to examine any thing, that they declined having any thing further to say to him. When their accounts were ready to be settled, I examined them, struck the balance, and Mr Arthur Lee joined with Dr Franklin and myself in signing draughts on Mr Grand for the money. The bills were drawn in favor of Messrs Sabbatier and Desprez solely, Mr Holker taking no share in the commissions, but generously gave in the time he had spent in the affair, though it had been considerable. This gentleman is now in Philadelphia, and if necessary may be applied to respecting what I have said on this subject; his character, as well as that of his worthy father is well known in France, where they are jointly inspectors of the manufactures of that kingdom, and on every occasion they exerted themselves to serve this country, a testimony due to them from me when I am called on to mention them publicly. The instances they gave me personally of the most disinterested friendship and attachment I shall never forget.

I can but return to Mr Williams. This gentleman, after stating all his accounts in the fairest and most explicit order, attended near ten weeks at Passy for a settlement. Doctor Franklin and Mr Adams, as has before been related, so far approved of them as to order his balance, or nearly the whole of it, to be paid him, and gave him a letter certifying him of their full persuasion of his ability and integrity, and that he had done good services, yet such was the disposition of Mr Lee towards him, that he could by no means get them past. Impatient and wearied out with the captious insulting manner in which he was treated by Mr Lee, and which nothing but his official character protected him in, Mr Williams engaged a gentleman from Boston, Mr Cutler, to copy off all his accounts, and compare them with the original vouchers, and to make a voyage to America, to lay them before Congress. This gentleman arrived a few days since, and having made the voyage and journey on this purpose only, I take the liberty to entreat Congress in behalf of my absent friend and their faithful servant, that those accounts may be examined, that Mr Cutler may be heard if necessary to explain them, and Mr Williams relieved from the embarrassments of Mr Lee, whose disposition does not appear to be mended since I left Paris, but, if possible, greatly increased for dispute, and for the most vexatious altercation.

Could I take any pleasure on so disagreeable a subject, and one which throws the affairs as well as reputation of these States into confusion and disgrace, it would be to find that the universal testimony of all who know the situation of our affairs in France, confirms what I have in duty and justice to these States been obliged to lay before Congress. Mr Lee's nephew, a son of the honorable Richard Henry Lee, is in the house of Mons. Schweighauser, at Nantes, as a clerk, or as a partner, I am informed the latter. Commercial affairs, and the disposition of prizes, are put into the care of this house, while a near connexion of M. Schweighauser, at Guernsey, or Jersey, is employing himself in sending out cruisers on our commerce. I know nothing of M. Schweighauser, except by reports; those have been in his favor as a good merchant, but this circumstance, added to some others, which Mr Cutler informs me of, has given cause for the greatest uneasiness and distrust, which, added to the difficulties met with at Paris from Mr Arthur Lee, prevents any thing being done to effect, if really any thing at all towards sending out supplies to these States.

SILAS DEANE.