Since the receipt of the letter of Monsieur de Calonne, of October the 22nd, 1786, I have several times had the honor of mentioning to you, that I was endeavoring to get the substance of that letter reduced into an Arrêt, which, instead of being revocable by a single letter of a Comptroller General, would require an Arrêt to repeal or alter it, and of course must be discussed in full Council, and so give time to prevent it. This has been pressed as much as it could be with prudence. One cause of delay has been the frequent changes of the Comptroller General; as we had always our whole work to begin again, with every new one. Monsieur Lambert’s continuance in office for some months has enabled us, at length, to get through the business; and I have just received from him a letter, and the Arrêt duly authenticated; of which I have the honor to send you a number of printed copies. You will find, that the several alterations and additions are made, which, on my visit, to the seaports, I had found to be necessary, and which my letters of June the 21st and August the 6th particularly mentioned to you. Besides these, we have obtained some new articles of value, for which openings arose in the course of the negotiation. I say we have done it, because the Marquis de la Fayette has gone hand in hand with me through this business, and has been a most invaluable aid. I take the liberty of making some observations on the articles of the Arrêt, severally, for their explanation, as well as for the information of Congress.
Article 1. In the course of our conferences with the Comptroller General, we had prevailed on him to pass this article with a suppression of all duty. When he reported the Arrêt, however, to the Council, this suppression was objected to, and it was insisted to re-establish the duties of seven livres and ten sous, and of ten sous the livre, reserved in the letter of M. de Calonne. The passage of the Arrêt was stopped, and the difficulty communicated to me. I urged every thing I could, in letters and in conferences, to convince them that whale-oil was an article which could bear no duty at all. That if the duty fell on the consumer, he would choose to buy vegetable oils; if on the fisherman, he could no longer live by his calling, remaining in his own country; and that if he quitted his own country, the circumstances of vicinity, sameness of language, laws, religion, and manners, and perhaps the ties of kindred, would draw him to Nova Scotia, in spite of every encouragement which could be given at Dunkirk; and that thus those fishermen would be shifted out of a scale friendly to France, into one always hostile. Nothing, however, could prevail. It hung on this article alone, for two months, during which we risked the total loss of the Arrêt on the stability in office of Monsieur Lambert; for if he had gone out, his successor might be less favorable; and if Monsieur Necker were the successor, we might lose the whole, as he never set any store by us, or the connection with us. About ten days ago, it became universally believed that Monsieur Lambert was to go out immediately. I therefore declined further insisting on the total suppression, and desired the Arrêt might pass, leaving the duties on whale-oil, as Monsieur de Calonne had promised them; but with a reservation, which may countenance our bringing on this matter again, at a more favorable moment.
Article 2. The other fish-oils are placed in a separate article; because, whatever encouragements we may hereafter obtain for whale-oils, they will not be extended to those which their own fisheries produce.
Article 3. A company had silently, and by unfair means, obtained a monopoly for the making and selling spermaceti candles: as soon as we discovered it, we solicited its suppression, which is effected by this clause.
Article 4. The duty of an eighth per cent, is merely to oblige the masters of vessels to enter their cargoes, for the information of government; without inducing them to attempt to smuggle.
Article 6. Tar, pitch, and turpentine of America, coming in competition with the same articles produced in the southwestern parts of France, we could obtain no greater reduction, than two and a half per cent. The duties before were from four to six times that amount.
Article 10. The right of entrepôt, given by this article, is almost the same thing, as the making all their ports, free ports for us. The ships are indeed subject to be visited, and the cargoes must be reported in ports of entrepôt, which need not be done in the free ports. But the communication between the entrepôt and the country is not interrupted by continual search of all persons passing into the country, which has proved so troublesome to the inhabitants of our free ports, as that a considerable proportion of them have wished to give back the privilege of their freedom.
Article 13. This article gives us the privileges and advantages of native subjects, in all their possessions in Asia, and in the scales leading thereto. This expression means, at present, the isles of France and Bourbon, and will include the Cape of Good Hope, should any future event put it into the hands of France. It was with a view to this, that I proposed the expression, because we were then in hourly expectation of a war, and it was suspected that France would take possession of that place. It will, in no case, be considered as including any thing westward of the Cape of Good Hope. I must observe further, on this article, that it will only become valuable, on the suppression of their East India Company; because, as long as their monopoly continues, even native subjects cannot enter their Asiatic ports, for the purposes of commerce. It is considered, however, as certain, that this Company will be immediately suppressed.
The article of tobacco could not be introduced into the Arrêt; because it was necessary to consider the Farmers General as parties to that arrangement. It rests, therefore, of necessity, on the basis of a letter only. You will perceive that this is nothing more than a continuation of the order of Bernis, only leaving the prices unfixed; and like that, it will require a constant and vexatious attention, to have its execution enforced.
The States who have much to carry, and few carriers, will observe, perhaps, that the benefits of these regulations are somewhat narrowed, by confining them to articles brought hither in French or American bottoms. But they will consider, that nothing in these instruments moves from us. The advantages they hold out are all given by this country to us, and the givers will modify their gifts as they please. I suppose it to be a determined principle of this court not to suffer our carrying business, so far as their consumption of our commodities extends, to become a nursery for British seamen. Nor would this, perhaps, be advantageous to us, considering the dispositions of the two nations towards us. The preference which our shipping will obtain on this account, may counterpoise the discouragements it experiences from the aggravated dangers of the Barbary States. Nor is the idea unpleasing, which shows itself in various parts of these papers, of naturalizing American bottoms, and American citizens in France and in its foreign possessions. Once established here, and in their eastern settlements, they may revolt less at the proposition to extend it to those westward. They are not yet, however, at that point; we must be contented to go towards it a step at a time, and trust to future events for hastening our progress.