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.