JOHN JAY."
This letter gives occasion for many observations, which I am persuaded will not escape Congress, and therefore I forbear repeating them. Your Excellency will be pleased to observe, that on some of the subjects of it I ought to be without delay apprised of the intentions of Congress, and furnished with such information and instructions as may be necessary to enable me to fulfil them.
On the 27th of April last, I received at Madrid a letter from the Committee of Foreign Affairs, enclosing copies of the resolutions of Congress of the 23d and 29th of November, 1779, for drawing on Mr Laurens and myself for £100,000 sterling each. I went the next day to Aranjues, and the day after wrote to the Count de Florida Blanca, in the words following, viz.
"Aranjues, April 29th, 1780.
"Sir,
"By the address of Congress to their constituents on the subject of their finances, which I had the honor of transmitting to your Excellency, you have doubtless observed, that in September last Congress came to a resolution of emitting no more bills, than, with those already emitted and in circulation, would amount to 200,000,000 of dollars; that about the same time they called upon their constituents to raise money by taxes, and assigned the first day of January last for the first payment, at which day it was supposed, that the bills to be emitted would be nearly expended.
"Congress perceiving that at once to stop the great channel of supplies, that had been open ever since the war, and to substitute another equally productive, was not one of those measures which operate almost insensibly without hazard or difficulty; and well knowing that if the first payment of these taxes should be delayed beyond the limited time, the treasury would be without money, and the public operations obstructed by all the evils consequent to it; they were of opinion, that collateral and auxiliary measures were necessary to ensure success to the great system for retrieving and supporting the public credit. So early, therefore, as the 23d day of November last, they took this subject into their most serious consideration, and although they had the highest reason to confide in the exertions of their constituents, yet having received repeated assurances of his Majesty's friendly disposition towards them, and being well persuaded, that they could avail themselves of his Majesty's friendship on an occasion more agreeable to him and advantageous to them, than on one so interesting to the United States, and important to the common cause, they adopted a measure, which, but for these considerations, might appear extraordinary, viz. to draw bills upon me for £100,000 sterling, payable at six months' sight.
"The drawing bills previous to notice of obtaining money to satisfy them may at first view appear indelicate, but when it is considered that the whole success of this measure depended on its taking place between the 23d of November, and the first of January last, in which period it was impossible to make the application, his Majesty's magnanimity will I am persuaded readily excuse it.
"As I shall always consider it my duty to give your Excellency all the information in my power, that may enable his Majesty from time to time to form a true judgment of the state of American affairs, it is proper, that I should inform your Excellency, that Congress, having reasons to believe that a loan might be obtained in Holland, did shortly after my leaving America take measures for that purpose, and on the 23d of November last resolved to draw bills on Mr Henry Laurens, to whom that business had been committed, for the sum of £100,000 sterling.
"I greatly regret that it was not in my power to advise your Excellency of these matters sooner; but it was not until the 27th instant, at Madrid, that I received the letter which informed me of them.