On running over the catalogue of American imports, France will naturally mark out those articles which she could supply us to advantage; and she may safely calculate, that, after a little time shall have enabled us to get rid of our present incumbrances, and some remains of attachment to the particular forms of manufacture to which we have been habituated, we shall take those articles which she can furnish, on as good terms as other nations, to whatever extent she will enable us to pay for them. It is her interest therefore, as well as ours, to multiply the means of payment. These must be found in the catalogue of our exports, and among these will be seen neither gold nor silver. We have no mines of either of those metals. Produce therefore is all we can offer.[130]

The conclusion was that it was imperative to obtain such abatement of duties and even such exemptions as the importance of the article might justify, in the hope that his country would be enabled to build up a commercial credit of about 275,000 louis, which would provide for the service and amortization of the American debt to France.

Thanks to the unrelenting efforts of Lafayette and also to the sympathetic attitude of the committee, a series of arrêts du conseil listed in a letter to Monroe was finally obtained.[131] There was little hope at first that they would be countersigned, but in October of the same year Jefferson, with evident satisfaction, was able to inform Jay of the new regulations granting free ports to America, abolishing export taxes on brandies, and for a year the tax on whale oil and spermaceti, on potash, furs, leather, timber, trees, and shrubbery, brought either in American or French bottoms. Every effort had been made not only to place the United States on the footing of the most favored nation, but to encourage her infant industries and manufactures. The new regulations approved by Calonne did much to free America from her commercial subservience to Great Britain and also reinforce, according to Jefferson's wishes, the motives for a "friendship from France towards America."

This was by no means the end of all difficulties; the abatement on whale oil was only temporary and Jefferson was never able to obtain entire satisfaction in respect to the tobacco trade, but there is no doubt that the situation had greatly improved.

Even during the last months of his stay in France he never overlooked an opportunity to further the commercial interests of the United States. His fear to see his fellow countrymen "over-trade themselves and embark into the ocean of speculation" had not abated. He still believed that "we have no occasion for more commerce than to take off our superfluous produce", and tobacco was clearly in that class.[132] But at that time there arose an opportunity both to develop commercial relations and to be of distinct service to France. The years that immediately precede the French Revolution were marked by a very distressing food shortage in France and particularly in the capital. This was one of the most disquieting problems confronting the Committee of Commerce and the city syndics. Jefferson, because of his connections with Lafayette, Du Pont de Nemours, and Mr. Ethis de Corny, was particularly well informed on the situation and he turned his best efforts to induce the government to remedy it through the importation of American products. He thought that besides the salt fish from New England, salt meat and corn beef would constitute a desirable addition to the French diet and he undertook a campaign to convert the French to the idea. One of his last letters to Necker, on September 26, 1789, was to recommend the importation of salted provisions from the United States, appraising the quality of American salt meat, for "the experience of a great part of America, which is fed almost entirely on it, proves it to be as wholesome as fresh meat."[133]

In spite of all the obstacles to the development of the Gallo-American commerce because of the deep-rooted French horror of innovations and changes, the efforts of Jefferson and his friends were not wholly unavailing. According to Mr. Woolery, in 1789 importations from the United States amounted to 140,959 barrels of flour, 3,664,576 bushels of wheat and 12,340,000 pounds of rice. Vessels coming from the United States to French ports in this year included thirteen French, forty-three English and one hundred and sixty-three American; the tonnage of American vessels was 19,173 in 1788 and 24,173 in 1789. Exports to France in 1788 were valued at $1,384,246; to French possessions in America $3,284,656; and from them, $155,136 and $1,913,212 respectively. In this trade the American tonnage engaged was approximately ten times that of the French. The philosopher had proved himself a first-class commercial agent. He had built up trade relations which would have consolidated the friendship between the two countries if the Revolution had not intervened. But no real friendship can exist between creditor and debtor; the debt problem was no less important than the commercial problem, and Jefferson displayed on this occasion an ingenuity and a diplomatic skill no less worthy of commendation.

When he took charge of the legation at Paris the finances of the United States were in a deplorable condition. Loans made by the Farmers-general, by Beaumarchais, by the King of France, and loans contracted in Holland and in Spain, constituted the most important outstanding liabilities of the American Government. In 1783 the situation as reported to Congress was as follows:

To the Farmers-general of France, livres 1,000,000
To Beaumarchais3,000,000
To King of France, to the end of 1782 28,000,000
To same for 17836,000,000

To this total was to be added a loan from Holland for $671,200, and $150,000 borrowed from Spain by Jay. Interest was coming in at the rate of four per cent. on the French loan, making it a total of approximately $7,885,000. The domestic situation was far worse; the States had plunged into issues of paper money: $241,552,780 had been issued in bills of credit by Congress, and $209,524,776 by the States.

If it is remembered that private investors had bought American paper rather recklessly, that important sums were due to England, and that the United States could not even meet the interest on the debts without further borrowing, it is small wonder that European creditors began to wonder whether they would ever be repaid. The first task confronting the new Minister Plenipotentiary was to convince them that the United States as then organized had a sufficient stability to allay all fears. Jefferson undertook at once to clarify the situation. In a letter to the Dutch bankers, N. and J. Van Staphorst, he asserted that no man in America had ever entertained any doubt that "our foreign debt is to be paid fully." He significantly added: "Were I the holder of any of them, I should not have the least fear of their full payment." But he had to call the attention of the bankers to the fact that some international notes were issued for paper money debts, and those of course would be subject to a certain depreciation, to be settled by Congress according to carefully worked out tables. The safer thing, therefore, for European investors was to beware of and to avoid any speculation on American bills and "foreigners should be sure that they are well advised, before they meddle with them, or they may suffer."[134] He repeated the same advice on October 25: "It is a science which bids defiance to the powers of reason."