Finding the Minister's heart and imagination much attached to his favorite idea of getting American frigates at the expense of the United States, I gave him the following hint.
"Madrid, June 28th, 1780.
"Sir,
"I have the honor of transmitting to your Excellency, herewith enclosed, a copy of an act of the State of Connecticut, just come to hand, in which are recited certain resolutions of Congress, passed the 18th of March last.
"These resolutions are calculated to put the American finances on a permanent footing. They direct, among other things, that bills be issued, redeemable in specie, with interest, at the expiration of six years. The interest to be paid at the redemption of the bills, or at the election of the holder annually, at the American Loan Offices, in sterling bills of exchange on the commissioners in Europe.
"Your Excellency will perceive, that when this plan, so well concerted, shall be fully executed, it will furnish the United States with resources equal to all the exigencies of the war, and probably enable them to supply his Catholic Majesty with vessels, &c, &c.
"I take the liberty, therefore, of submitting to your Excellency's consideration, whether it would not be for the benefit of both nations, that his Majesty, on the one hand, should engage his responsibility for the credit of a certain proportion of the sum so to be emitted; and that the United States, on the other hand, should not only pledge their faith to indemnify his Majesty, but also furnish him with certain aids in vessels, &c.
"If your Excellency should think this hint worthy of your attention, it will be easy to improve it, and adjust the particulars.
"I have the honor to be, &c.
JOHN JAY."