Paris, August 21st, 1778.
Gentlemen,
I wrote you on the 28th ult. of my having pressed for the loan directed by Congress. I have received an assurance through the Ambassador, that an answer will be given to my memorial as soon as possible.
I enclose you a memorial for the consideration of Congress, as we do not think ourselves authorised to act upon it without express orders. Could one be sure, that justice would be done to the public, it might be of advantage to adopt this scheme, for Congress must not trust to the success of a loan, which, for the following reasons, I apprehend will be found impracticable.
The war in Germany supervening on that between us and Great Britain, and the preparations for it by France and Spain, have raised and multiplied the demand for money, so as to give the holders of it their choice and their price. The Empress Queen has engrossed every shilling in the Netherlands. England has drawn large sums from the Hollanders, who cannot easily quit their former market. France is negotiating a loan of one hundred million livres, which will exhaust Geneva and Switzerland. The money holders regard the lending their money at such a distance, as Jacob did the sending Benjamin into Egypt, and it is time only will make them endure the thought of such a separation.
These are the difficulties which the circumstances of things oppose to our scheme of a loan, and render the aid of some other operation necessary for sinking the superabundant paper.
The Minister’s answer relative to M. Holker was, that he had no authority from this Court, but on this our joint letter I expect will be more full. I have determined to write to you once a month or oftener, as opportunity offers, and as we do not write so frequently, I am tempted to mention things which should properly come from all the Commissioners, as they relate to the joint commission.
From the necessity of the case we have ventured to administer the oath of allegiance to those who desire passports of us, but I hope Congress will authorise their Commissioners to do so where it is necessary.
I have the honor to be, &c.
ARTHUR LEE.