The moment it was known, the most energetic orders were sent to every State and port of the Union, to prevent a repetition of the accident. On a suggestion that citizens of the United States had taken part in the act, one, who was designated, was instantly committed to prison, for prosecution; one or two others have been since named, and committed in like manner; and should it appear that there were still others, no measures will be spared to bring them to justice. The President has even gone further. He has required, as a reparation of their breach of respect to the United States, that the vessels so armed and equipped, shall depart from our ports.
You will see, Sir, in these proceedings of the President, unequivocal proofs of the line of strict right which he means to pursue. The measures now mentioned, are taken in justice to the one party; the ulterior measure, of seizing and restoring the prizes, is declined in justice to the other; and the evil, thus early arrested, will be of very limited effects; perhaps, indeed, soon disappear altogether.
I have the honor to be, with sentiments of respect, Sir, your most obedient, and most humble servant.
TO THE PRESIDENT OF THE UNITED STATES.
June 6, 1793.
I cannot but think that to decline the propositions of Mr. Genet on the subject of our debt, without assigning any reason at all, would have a very dry and unpleasant aspect indeed. We are then to examine what are our good reasons for the refusal, which of them maybe spoken out, and which may not. 1st. Want of confidence in the continuance of the present form of government, and consequently that advances to them might commit us with their successors. This cannot be spoken out. 2d. Since they propose to take the debt in produce, it would be better for us that it should be done in moderate masses yearly, than all in one year. This cannot be professed. 3d. When M. de Calonne was Minister of Finance, a Dutch company proposed to buy up the whole of our debt, by dividing it into actions or shares. I think Mr. Claviere, now Minister of Finance, was their agent. It was observed to M. de Calonne, that to create such a mass of American paper, divide it into shares, and let them deluge the market, would depreciate the rest of our paper, and our credit in general; that the credit of a nation was a delicate and important thing, and should not be risked on such an operation. M. de Calonne, sensible of the injury of the operation to us, declined it. In May, 1791, there came, through Mr. Otto, a similar proposition from Schweizer, Jeanneret &Co. We had a communication on the subject from Mr. Short, urging this same reason strongly. It was referred to the Secretary of the Treasury, who, in a letter to yourself, assigned the reasons against it, and these were communicated to Mr. Otto, who acquiesced in them. This objection, then, having been sufficient to decline the proposition twice before, and having been urged to the two preceding forms of government (the ancient and that of 1791), will not be considered as founded in objections to the present form. 4th. The law allows the whole debt to be paid only on condition it can be done on terms advantageous to the United States. The minister foresees this objection, and thinks he answers it by observing the advantage which the payment in produce will occasion. It would be easy to show that this was not the sort of advantage the Legislature meant, but a lower rate of interest. 5th. I cannot but suppose that the Secretary of the Treasury, being much more familiar than I am with the money operations of the Treasury, would, on examination, be able to derive practical objections from them. We pay to France but five per cent. The people of this country would never subscribe their money for less than six. If, to remedy this, obligations at less than five per cent. were offered, and accepted by Genet, he must part with them immediately, at a considerable discount, to indemnify the loss of the one per cent., and at still greater discount to bring them down to par with our present six per cent., so that the operation would be equally disgraceful to us and losing to them, &c., &c.
I think it very material myself to keep alive the friendly sentiments of that country, as far as can be done without risking war or double payment. If the instalments falling due this year can be advanced, without incurring those dangers, I should be for doing it. We now see by the declaration of the Prince of Saxe Cobourg, on the part of Austria and Prussia, that the ultimate point they desire is to restore the constitution of 1791. Were this even to be done before the pay days of this year, there is no doubt in my mind but that that government (as republican as the present, except in the form of its Executive) would confirm an advance so moderate in sum and time. I am sure the nation of France would never suffer their government to go to war with us for such a bagatelle, and the more surely if that bagatelle shall have been granted by us so as to please and not to displease the nation; so as to keep their affections engaged on our side. So that I should have no fear in advancing the instalments of this year at epochs convenient to the Treasury. But at any rate should be for assigning reasons for not changing the form of the debt. These thoughts are very hastily thrown on paper, as will be but too evident.
I have the honor to be, with sentiments of sincere attachment and respect, Sir, your most obedient, and most humble servant.