TO THE PRESIDENT OF CONGRESS.
The Hague, August 23d, 1781.
Sir,
Since my last, the Provincial States of Holland have been separated till last week.
I was not unacquainted with the negotiation set on foot by the French Ambassador here for a loan of five millions of florins, or five hundred thousand pounds, at four per cent, nor with his notes lately presented for this purpose to the Graphiary, M. Fagel; and although the Ambassador does not yet know that I am acquainted with it, I thought myself obliged to abstain discreetly from writing or speaking about it for obvious reasons. I am now happy with the assurance given me, that the proposition of this loan is committed, and will soon be agreed by their High Mightinesses, either by their taking up the money themselves, and lending it to France, or by their countenancing and warranting the taking it up directly by France; the only secret, or at least not publicly acknowledged particular of this agreement, will be the destination of this money in behalf of the United States. This true account is given me by a friend, who has it officially from the mouth of the Grand Pensionary.
The Baron Lynden had written and delivered into the hands of the President of the States-General, a letter to their High Mightinesses, containing the reason which engaged him to resign his Embassy to Vienna, and to decline any other, viz; the unconstitutionality of a foreigner's (the Duke of Brunswick,) being the only counsel to the Stadtholder, for internal as well as external politics and administration of this Republic. This letter the Baron had been prevailed upon to desist from having read to their High Mightinesses; and he took it out of the hands of the President, in presence of the Grand Pensionary of Holland, and of the Graphiary of their High Mightinesses, reserving to himself, however, the liberty of presenting it again, whenever he should think it convenient. Some persons (your servant for one) have been favored with the perusal of this letter. This compliance having somewhat discredited the Baron among the patriots, he brought his letter back on Tuesday last to the President; telling him it must be laid open to their High Mightinesses without any further delay, otherwise, he should publish it by printing.
August 24th. I have been favored by the Baron de Lynden with the sight, 1st of a letter written by him last Monday to the Stadtholder, in which he tells him, that seeing him still influenced and prepossessed in favor of, and directed by the Duke of Brunswick, he found his own honor and conscience did not suffer him to withhold any longer from their High Mightinesses and from his country, the abovementioned letter; 2dly. The answer of the Stadtholder, telling him, that it was for the sake of the Baron personally, that he had endeavored to persuade him to suppress that letter; but seeing him now determined to pull off the mask, and join with his adversaries, he gave him up to his own reflections; 3dly. The reply of the Baron, viz.; that whereas his Highness was sorry for the letter's being presented for his (the Baron's) sake only, he was determined to present it for the same sake, which he did accordingly; and the letter has been read to their High Mightinesses, the Baron himself being present at the second reading, or resumption, as they call it, the day following.
The original of a very noble and unanimous resolution of the city of Dort, respecting the Duke of Brunswick, where he is considered merely as a military servant of the Republic, and where the conduct of the Regency of Amsterdam is vindicated, has been read confidentially to me. Several other authentic and interesting pieces are in my hands, viz., 1st. A resolution of the city of Dort, of June 25th last, in which their Deputies are ordered to insist upon the important propositions of Amsterdam of May 18th being taken into serious consideration; and principally upon a good plan of operations during this war being concluded with France and her allies. 2dly. The reports of the several Admiralties of this Republic, showing their having accomplished the building, equipping, and putting into service ships, according to the orders of their High Mightinesses; to which the Admiralty of Amsterdam has added a remark, which has much displeased this Court, viz. that, after having done their duty in this matter, an account of the most proper application and disposition of the forces set in readiness, for the protection of this country, must not be asked from them, but from the higher power, which had the direction of their exertions; 3dly. A resolution of the Province of Holland, for another squadron to be speedily ordered to convoy to the Baltic, not only the merchant fleet of Amsterdam, lying in the Texel roads, which, after the glorious action of the 5th, against Parker, has been obliged to come back, but also those of Rotterdam, whose merchants, in a spirited address, have complained of being neglected. I would fain join herewith translated copies of these voluminous and interesting pieces, but without the aiding hand of a clerk, such a task is impossible for me to perform.
August 30th. To shorten the business of the abovementioned loan, probably, their High Mightinesses will open it themselves on their own credit, by warranting the capital and interest at four per cent, for surety of which they will receive, in that case, a general bond from France. Regularly they may pay no more than three per cent for themselves, and notwithstanding such small interest, the course of their paper is at twelve, fourteen, and even sixteen per cent purchase above the capital sum. By this method, if pursued, the subscription at four per cent will be rapidly completed.
September 2d. A very interesting resolution of August 28th, of one of the principal cities of this Province, was received the day before yesterday by her Deputies here, of which the substance is as follows.