TO THE COMMITTEE OF FOREIGN AFFAIRS.
St Ildefonso, August 22d, 1780.
Gentlemen,
In the course of this month I did myself the honor of writing to you by the General Pickering from Bilboa, and the Captain Kyan from Cadiz, as also via France. In these letters I informed you of the situation of our affairs here, and of that of Europe in general; since which, we have advanced very little. The Minister had informed Mr Jay, on the 5th of July, that he had sent for a person to succeed M. Miralles, and that on his arrival, arrangements would be made with respect to the bills presented to Mr Jay for payment, and that he would then enter into discussions on the other objects of Mr Jay's mission. Before and since that period, bills to the amount of thirty thousand dollars have been presented, of which Mr Jay has accepted for fourteen thousand, by the direction of the Minister, and none of the others have as yet been protested.
You will see by a state of the finances of this country, which in compliance with Mr Jay's instructions to me, at my departure from Cadiz, I have had the honor to give him, that their revenues and resources since the war have greatly diminished, and that previous to that period, they were by no means so flourishing as Congress had reason to suppose. In most of the conferences with the Minister, the scarcity of cash has been objected more than the want of inclination, and hints have been thrown out, that it would be much more convenient for the Court, to grant the United States aids in money from their possessions in America than in Europe. Although hopes have been as constantly given, that a part of the sum drawn for would be furnished at the end of the present year, or commencement of the next, and that measures in the mean time might be taken to prevent embarrassments, in case of the arrival of bills after that period, great surprise has been expressed, that Congress should take such a step without previously informing the Court of their intentions, and obtaining its approbation of the measure. Congress will therefore judge of the propriety of disposing of any bills, that may remain unsold, until it is fully ascertained, that they will be punctually paid. Mr Jay, now at Madrid, where the death of his child, and the consequent distresses of his family, detain him a few days, will undoubtedly transmit more ample intelligence on this subject, with the various papers in his possession necessary to explain it. This Court has been obliged to make considerable loans, for their own current expenses, the nature of which I hope to be able to explain in a future letter. It has lately obtained seven millions, five hundred thousand current dollars, in France and elsewhere. The loan is for nine millions, and from the nature of it will create a temporary paper circulation to that amount in this kingdom. I shall transmit to Congress, as soon as it becomes public, a full detail of its operations.
Mr Cumberland, whom I mentioned in my last, and whose name you will find in all the European gazettes, is still at Madrid, from whence he has lately had permission to send a courier to London, but as the Spanish Minister has engaged to impart any serious proposals he may make, and as the French Ambassador expresses no uneasiness from the residence of this gentleman in Spain, although this circumstance at this crisis is extraordinary, we cannot presume there can be solid ground for apprehension. Considerable revolutions, however, have happened in the system of politics of this country, ever since the accession of the House of Bourbon, and where governments are often more influenced by the counsels, and sometimes the caprices of individuals, than from regard to the real and permanent interest of a nation, there is always something to fear. Congress judging from the assurances of the Minister, and the King's character, which is remarkable for steadiness, on the one part, and from the circumstance of Mr Cumberland's residence here, and the constant endeavors of our enemies by every insidious art to misrepresent our situation, on the other, will be best able to draw conclusions from the whole.
The treaty proposed by Russia to the neutral maritime powers, to secure their commerce, and protect their navigation, has been or will be acceded to by Sweden, Denmark, the Hanseatic towns, and Holland, and a Russian squadron is expected in the Channel daily. Portugal, it is said, influenced by England, will not accede to this treaty, which will put a stop to the piratical conduct of that country. France and Spain exclaim, against the partiality of Portugal to Great Britain, and I have been informed, but I do not pretend to vouch for the authenticity of the intelligence, that strong representations have been made to that Court, either to shut its ports against the armed vessels of the nations at war, or to take a part in it. The French Minister to that Court said something to the same purpose to me at Madrid, on his way to Lisbon. The English at present sell their prizes there, without the formality of condemnation.
The Count d'Estaing is now here, and on every occasion manifests the strongest attachment to the United States and their interests. The general opinion gives him the command of a part, if not the whole of the combined fleets, which amount to thirty six sail of the line, now at sea, commanded by M. Cordova. The English fleet under Geary, is also cruizing between Ushant and Cape St Vincent, to prevent the junction of the ships from Brest and Ferrol with the Spanish Admiral, and to protect their outward end homeward bound convoys, and to intercept those of the allies.
I had written thus far, when a courier arrived with the important news of the combined fleets having fallen in with, and taken fiftysix sail out of sixty, destined to the East and West Indies, Madeira and Quebec. I have requested Mr Harrison at Cadiz to enclose to the Committee a list of the prizes, and the nature of their cargoes, as it has not yet been received here. This will be severely felt in England, and will occasion more clamor against the Ministry, than all their naval losses since the war. Mr Jay has heard from Congress but once since we have been in Spain, and very seldom from our other correspondents, the last letters from Paris, mention that Messrs Franklin, Adams, and Dana, were well, and that Mr Adams was going to Holland.
I have the honor to be, &c.