TO THE COMMITTEE OF SECRET CORRESPONDENCE.
Amsterdam, November 2d, 1776.
Gentlemen,
Previous to your attention to what follows, it will be necessary for you to know that I have lived with Mr Deane since his first arrival at Paris; that I took that city in my way from London to Nantes, to find a passage to my native country, and with despatches, which Mr Arthur Lee intrusted to my care, for the honorable Congress. Having a relapse of a disorder, which prevented me from travelling, I stopped at Paris, and endeavored to find out, by means of Count d'Estaing and other persons of eminence, the sentiments of the French Court respecting our affairs; and the moment I knew of Mr Deane's arrival, offered him all the services in my power, and, of consequence, we have lived together until the 10th of the present month.
At that time the agent of the King of Prussia, who had often, as Mr Deane has informed you, made proposals of a commercial nature, expressed a desire that some American would go to Berlin, and this he gave us to understand was at the instance of his Sovereign, who wished to have a clear idea of the nature of our commerce, and expressed a curiosity, which he wished to gratify, by a minute detail of our affairs. Mr Deane thinking this an opportunity not to be neglected to interest a Prince, who for several years has been dreaming of making his port of Emden, an Amsterdam, proposed it to me. However unequal to the task, I have cheerfully accepted it; happy to find any opportunity of showing with what a fervent zeal I am devoted to the glorious cause, which, at present, by interesting their humanity as well as policy, gives us so much consequence in the eyes of Europe.
Here I have endeavored to engage merchants to speculate in a direct commerce to America, to find out the sentiments of the people in general respecting us, to know whether, in case of necessity, the United States would be able to negotiate a loan, whether England would be able to obtain further credit, and by this barometer of the ability of Princes, to discover their present situation. On these heads I have written Mr Deane, but having an opportunity by the way of St Eustatia, and thinking none should be neglected of giving information, though mine, perhaps, may not be of importance enough to merit that title, I have taken the liberty of addressing the honorable Committee. Arriving but two days after the accounts had reached this city, of our misfortune on Long Island, I found many, even of the sanguine friends of America dejected, and those of England almost in a frenzy of joy. In this disposition, it is easy to judge, no hopes could be entertained of engaging merchants in a direct trade. I find they have the greatest inclination to serve us, and at the same time themselves, for no people see their interests clearer, but their fears that we shall be subdued, the confident assertions of the friends of England confirming these apprehensions, the prodigious sums they have in the English funds, with this unlucky business at New York, all conspire to prevent direct speculation.
As my letters from Paris introduced me to the first houses here, I have had the best opportunity of knowing their sentiments, and I can venture to say, that with many who are apparently adverse to us, it is interest combating with principle, for insulted, searched, and plundered as the Dutch were the last war, and are at present, there are individuals who by no means want sensibility to feel, though the public wants spirit to resent the injury. The States have, however, in answer to a fresh remonstrance of General Yorke, declared that their ports are open to vessels of all nations, and that their trade to and from their own Colonies shall be unmolested, their subjects complying with the ordinances issued by their High Mightinesses. In fact, their prohibition of exporting warlike stores, extends to all British subjects. I hope it will not be long before all Europe will own us in another character. It is very certain, that without a very material and apparent success of the British arms in America, a loan would be very slowly negotiated for England here. There is nothing hinders them now from selling out of the English funds, but their not knowing what to do with their money; for this country may be called the treasury of Europe, and its stock of specie is more or less, according to the necessity of the different Princes in Europe. It being a time of peace, the call has not been very great of late.
Having mentioned the credit of England, that of France is next to be considered, and I am very sorry to say that has been very low here of late. The dreadful mismanagement of the finances in the late King's reign, and the character of the late Controller General, M. d'Olugny, had reduced it so low, that it was impossible to borrow anything considerable on perpetual funds. Perhaps a Minister of Finance, in whose probity the world have a confidence, may restore their credit. At this moment that is in some measure the case, for the French stocks rise on the appointment of M. Taboreau. That it is possible for France to borrow may be demonstrated; for at the time M. Turgot was removed, he was negotiating a loan here, and was likely to succeed, for sixty millions of guilders. The credit of Spain is extremely good, and that kingdom may have what money it will, and on the best terms. The Emperor's credit is also good, not as Emperor, but from his hereditary dominion. Sweden and Denmark both have good credit. The former, the best; they have money at four per cent; and it is not long since the King of Sweden borrowed three millions of guilders at this interest, to pay off old debts at five per cent. His interest is paid punctually. Prussia has no credit here, but the King's treasury is full by squeezing the last farthing from the people, and now and then he draws a little money from this Republic, by reviving obsolete claims. The credit of the Empress of Russia is very good; for she has punctually paid the interest of twelve millions of guilders, which she borrowed in her war with the Turks, and has lately paid off one million and a half of the principal. These are the strongest circumstances she could have in her favor with a mercantile people. I have this statement of credit from persons employed in negotiating the several loans, and, therefore, can depend upon the truth of the information.
To come next to America, should time and necessity oblige her to look abroad for money. In the present state of affairs, it is not probable that a loan is practicable. But should success so attend our arms, that it should appear evident that we are likely to support our independence, or should either France or Spain acknowledge our independence, in either of these cases I believe we might have money, and when it was seen that we were punctual in our first payments of the interest, we should have as much as we pleased. The nature of the security, or the fund for the payment of interest, I have not been able to imagine. But, observing in a letter to Mr Dearethart, it was the writer's opinion, that the honorable Congress did not wish to circulate too much paper, for fear of depreciating its value, I thought that bills issued similar to those in circulation in the Provinces, and lodged in a public bank in Europe, might be accepted as a pledge or deposit for money borrowed by the United States. I beg pardon for the crudity of the idea, and would not have mentioned it here, but that having hinted at it in general conversation, people thought it might, on a future occasion, be adopted.
You will please to observe, that everything here mentioned came from an individual, who only as such avowed himself interested for his country's fate, and for its benefit sought information. Notwithstanding the rise of stocks, occasioned by our misfortune on Long Island, the Dutch are selling out, and my strongest representations have not been wanting to contribute a mite to this circumstance. The price of our product is great. Rice sells for twentyfive shillings sterling per cwt. and tobacco for eight stivers and four —— per pound. You have been threatened, that the Ukraine would supply Europe with tobacco. It must be long before that time can arrive. I have seen some of the tobacco here, and the best of it is worse than the worst of our ground leaf. Four hundred thousand pounds have been sent here this year. The Russian Ambassador said at the Baron le Guerre's, Ambassador from Sweden, where I had the honor to dine, that Russia soon would be able to supply the market with that article. In this he spoke more like an Ambassador than as a merchant. I took occasion in reply to observe, that if that was the case, and on many other accounts, it was the interest of her Majesty that all intercourse between Great Britain and America should be broken off, for that then the former would be dependent on Russia for all those articles, which hitherto the latter had supplied her with.