They cannot procure sufficient funds for their own expenses. They have just opened a loan of one hundred and eighty millions of reals, of which it is proposed to receive two thirds in cash, and the other in obligations of debts contracted in the reign of Philip the Fifth. The duties on tobacco are engaged for the payment of the interest, which is three per cent in perpetuity, and seven per cent in annuities. These are the outlines of the proposed plan, I have seen the brouillon of the schedule, which is not yet published. No great success is expected from this loan. On the 20th an assembly of the subscribers to the bank of San Carlos was held to choose directors and other officers, and to deliberate on further means for its establishment. The Governor of the Council of Castile presided at this assembly, the Minister of Finance was present, as likewise were the First Under Secretaries of the different departments of government. I found means to procure admittance to this meeting. Every proposition made by the projector, (M. Cabarrus) was unanimously agreed to. There were no speeches except to applaud the bounty of the King, who, to enable the bank to commence its operations, has granted thirty millions of reals in specie, and to the same amount in grain for the supply of the army, navy, &c. The directors chosen are much my friends, and have promised to give America the preference in all articles which it can furnish for the use of the marine, &c. &c. These directors as I advised you in former letters, are charged with the supplies for the army, navy, &c. with a commission of ten per cent to the profit of the bank. It will commence its proceedings in the month of April, with a capital of between four and five million of dollars.
I have mentioned, that I was formally visited by many members of the corps diplomatique, after the signature of the treaty with Great Britain. It may not be improper to acquaint you with the names of the respective countries of those who were the first to pay me their compliments on this occasion. The Ambassadors of Vienna and Venice, the Ministers of Russia, Prussia, Saxony, and Treves, and the Chargé d'Affaires of Denmark, paid me this respect. Most of them, but particularly the latter, seemed desirous of being informed of the method Congress proposed to take for the interchange of Ministers. Not knowing the sentiments of Congress on this subject, I replied, that whenever they chose to make official application to me, I would take the earliest opportunity of laying them before that body. Should Congress judge proper to employ persons at any of these Courts, permit me to suggest that the title of Minister will greatly augment the expense of these missions. That title obliges their servants to support an equipage and appearance, in some degree suitable to their rank; which often renders it improper for them to associate with those from whom the most useful information is to be obtained. The King of Prussia has adopted this system, and I am told the Emperor means to do the same.
In my next letter I expect to send copies of all our public accounts here, and am taking every proper step to prepare for my departure from hence, in case the Court should not change its conduct. I shall endeavor to behave on this occasion, in the manner least offensive possible, as well in consideration for the interests of our allies, as from a wish to prevent the Ministry from having any reasonable pretexts for disgust. For this purpose I have consulted, and shall continue to consult, the French Ambassador, as also the Marquis de Lafayette, whom I will induce to come hither should the peace take place, of which I have little doubt.
The divisions in Holland, are higher than ever. The King of Prussia seems disposed to take a part in them in favor of the Stadtholder. These divisions will probably be fatal to the interests of that country at the peace, and afford a striking example of the necessity of union in similar governments. I cannot refrain from adding, that our friends are apprehensive of animosities and jealousies between the States in our confederation, and that it seems to be the hope of our enemies. With the most fervent wishes that the latter may be disappointed,
I have the honor to be, &c.
WILLIAM CARMICHAEL.
TO ROBERT R. LIVINGSTON.
Madrid, January 18th, 1783.
Sir,