TO HIS EXCELLENCY MR. ADAMS.
Paris, Feb. 6, 1788.
Dear Sir,—The Commissioners of the Treasury have given notice to Willincks and Van Staphorsts, that they shall not be able to remit them one shilling till the New Government gets into action, and that therefore the sole resource for the payment of the Dutch interest till that period is in the progress of the last loan. Willinck and Van Staphorst reply that there is not the least probability of raising as much on that loan as will pay the next June interest, and that, if that payment fails one day, it will do an injury to our credit, which a very long time will not wipe off. A Mr. Stanitski, one of our brokers, who holds $4,340,000 of our domestic debt, offers, if we will pay him one year's interest of that debt, he will have the whole of the loan immediately filled up, that is to say, he will procure the sum of six hundred and twenty-two thousand eight hundred and forty florins still unsubscribed. His year's interest (deducting from it ten per cent. which he will allow for payment in Europe instead of America) will require one hundred and eighty thousand florins of this money. Messrs. Willinck and Van Staphorsts say that, by this means, they can pay Fiseaux' debt, and all the Dutch interest, and our current expenses here, till June, 1789, by which time the New Government may be in action. They have proposed this to the Commissioners of the Treasury; But it is possible that the delay of letters going and coming, with the time necessary between the receiving their answer and procuring the money, may force the decision of this proposition on me at the eleventh hour. I wish, therefore, to avail myself of your counsel before your departure, on this proposition. Your knowledge of the subject enables you to give the best opinion, and your zeal for the public interest, and I trust your friendly disposition towards me will prompt you to assist me with your advice on this question, to wit, if the answer of the Commissioners does not come in time, and there shall appear no other means of raising the June interest, will it be worse to fail in that payment, or to accept of about seven hundred thousand florins, on the condition of letting one hundred and eighty thousand be applied to the payment of a year's interest of a part of our domestic debt? Do me the friendship to give me an answer to this as soon as possible, and be assured of the sentiments of esteem and respect with which I have the honor to be, dear Sir, your most obedient, and most humble servant.
TO THE COMMISSIONERS OF THE TREASURY.
Paris, Feb. 7, 1788.
Gentlemen,—Your favors of November the 10th and 13th, and December the 5th, have been duly received. Commodore Jones left this place for Copenhagen, the 5th instant, to carry into execution the resolution of Congress of October the 25th. Whatever moneys that court shall be willing to allow, shall be remitted to your bankers, either in Amsterdam or Paris, as shall be found most beneficial, allowing previously to be withdrawn Commodore Jones' proportion, which will be necessary for his subsistence. I desired him to endeavor to prevail on the Danish Minister to have the money paid in Amsterdam or Paris, by their banker in either of those cities, if they have one.
M. Ast (secretary to the consulate) is at L'Orient. Whether he comes up with the papers, or sends them, they shall be received, sealed up and taken care of. I will only ask the favor of you, that I may never be desired to break the seals, unless very important cause for it should arise.
I have just received from Messrs. Willincks and Van Staphorsts, a letter of January the 31st, in which are these words: "The official communication we have of the actual situation and prospect of the finances of the United States, would render such a partial payment as that to Fiseaux' house of no avail towards the support of the public credit, unless effectual measures shall be adopted, to provide funds for the two hundred and seventy thousand florins, interest, that will be due the 1st of June next; a single day's retard in which would ground a prejudice of long duration." They informed me, at the same time, that they had made to you the following communication: that Mr. Stanitski, our principal broker, and holder of thirteen hundred and forty thousand dollars, of certificates of our domestic debt, offers to have our loan of a million of guilders (of which six hundred and twenty-two thousand eight hundred and forty are still unfilled) immediately made up, on condition that he may retain thereout, one hundred and eighty thousand guilders, being one year's interest on his certificates, allowing a deduction of ten per cent. from his said interest, as a compensation for his receiving it in Amsterdam instead of America, and not pretending that this shall give him any title to ask for any payment of future interest in Europe. They observe, that this will enable them to face the demands of Dutch interest, till the 1st of June, 1789, pay the principal of Fiseaux' debt, and supply the current expenses of your legation in Europe. On these points, it is for you to decide. I will only take the liberty to observe, that if they shall receive your acceptance of the proposition, some day's credit will still be to be given for producing the cash, and that this must be produced fifteen days before it is wanting, because that much previous notice is always given to the creditors that their money is ready. It is, therefore, but three months from this day, before your answer should be in Amsterdam. It might answer a useful purpose also, could I receive a communication of that answer, ten days earlier than they. The same stagnation attending our passage from the old to the new form of government, which stops the feeble channel of money hitherto flowing towards our treasury, has suspended also what foreign credit we had. So that, at this moment, we may consider the progress of our loan as stopped. Though much an enemy to the system of borrowing, yet I feel strongly the necessity of preserving the power to borrow, Without this, we might be overwhelmed by another nation, merely by the force of its credit. However, you can best judge whether the payment of a single year's interest on Stanitski's certificates, in Europe, instead of America, may be more injurious to us than the shock of our credit in Amsterdam, which may be produced by a failure to pay our interest.