The Imperial and Swedish Ministers declare that their respective Sovereigns will reclaim all vessels under their colors, going to or returning from America, which comply with the articles of the armed neutrality, and it has been hinted to me, that it was not difficult to obtain letters of naturalization for the crews of American vessels, provided the nominal officers are subjects of either country. The Court has at length consented to repay the money advanced in April last by the Marquis de Yranda, but has not enabled Mr Jay to pay the bills due this month, and as Dr Franklin has not authorised him to draw, M. Cabarrus, as I expected in my last, has consented to advance the sum sufficient for this purpose, amounting to thirtytwo thousand dollars. Perhaps Dr Franklin may soon enable Mr Jay to repay him.
Thirty thousand pounds sterling would pay all our debts here, which distress us more than the apprehension of not receiving our salaries, of which, though liberal, we have constant need, owing to the dearness of everything in this country, and the great expense incurred by the frequent change of residence of the Court, which circumstance obliges us to take lodgings at the royal residences; and which expense, the frequent journeys that we were constrained to make on account of our other business in Madrid, greatly augment. I should not touch on this subject, if Dr Franklin had not desired me to mention to Congress our personal difficulties and distresses, for I believe, with all the desire he has to serve us, he procures with difficulty sufficient funds for the payment of our salaries.
The expeditions mentioned in my former letters, are now both probably at sea; that from France sailed the 10th instant, and I know of a certainty, that orders have been sent to Cadiz to hasten the departure of the ships and troops at that post. The French ships there, mentioned in my last, take on board a million of dollars, and M. de Bussy, who formerly signalized himself in the East Indies, has gone thither incognito by land, accompanied by several officers, who have but lately returned from the East. It is therefore highly probable, that these vessels, joined by others, go thither, and will take under their escort a part of the troops embarked at Brest.
No great progress is made in the sieges of Gibraltar and Mahon; on the 27th ult., the enemy made a sally from the former place, in which they did more damage, than has been published here, having completely ruined the advanced works of the besiegers, the repair of which will require some time and much money. At Mahon, the rainy season has retarded the operation of the assailants. I am just told the Duc de Crillon demands a reinforcement of two thousand men, which will be granted to him. The enemy receives small succors from time to time by sea. The Court is about to negotiate another loan, in which if it does not succeed, perhaps it must have recourse to another emission of paper. The treasury is at a low ebb. The Minister of Marine demanded lately ten millions of reals, and received but three. The credit of the paper has lately risen, it is not negotiated at one and a half per cent loss.
A plan for a national bank, is at present before the Council. The projector, M. Cabarrus, proposes to form a capital of fifteen millions of dollars, of which he offers to procure six millions; each action to amount to two thousand reals, for which the proprietors receive a certain interest of four per cent, with the profits expected from this establishment; I have seen the plan, but had not permission to copy it, so that I can give but a faint sketch of it. Eight directors are to be chosen the first year, and six annually, by the assembly of the proprietors; two of these directors are to be perpetual, because it is proposed, that they should have the direction of the supplies for the army and navy, with an interest of ten per cent, to the emolument of the bank; these two directors are to be named by the Court, out of four chosen by the proprietors; in other respects the Court to have no influence. If this plan, which was originally a part of the scheme for the circulation of paper here, should succeed, the paper which will be discounted by it, will probably preserve its credit. The Gromios, companies possessed of exclusive privileges, will be annihilated, and much money, now dormant in the coffers of individuals, be called into circulation. The Gromios pay two and a half per cent interest, and the bank four, which difference, joined to the hopes of farther profits, will tempt the money-holders to withdraw their funds from the hands of the first, and place them in the latter. But these companies and their friends, oppose it strongly, as do also the persons employed in supplying the army and navy, with whom, it is said, people in various departments of Government have interested connexions.
The Courts of France and Spain seem determined to continue the war with vigor, and you will see by the King of Great Britain's speech, that he is not disposed to accommodation. The Empress of Russia still continues her endeavors to bring about a peace between England and Holland, to which the British Ministry has lately appeared to listen, although in a haughty manner. I am told the republican party is more exasperated than ever, by their answer to Russia, which is published. But your information will be much more accurate from Mr Adams, than any that I can procure. My correspondents from France write me, that the nation is much elated by the late triumph of the allied arms. This success, and the flourishing state of their commerce, reconcile them to the war, the continuance of which their Ambassador here regards as inevitable.
The resolution of Congress, prohibiting all intercourse between the citizens of America and the subjects of Great Britain, gives a secret satisfaction both in France and this country, and augments the jealousy of others, that the influence of France will exclude at the peace all amicable connexions between the States and Great Britain, at least this is the language of several of the foreign Ministers and their families. The Imperial Ambassador has lately made representations on account of an ordinance rigorously executed of late in the ports, obliging all captains of vessels to make an oath, declaratory of the contents of all packages, &c. &c. on board their vessels. He has endeavored to make this a common cause. The commerce murmurs against this, and other regulations lately enforced. It must be confessed, that Spain seems desirous to discourage all commerce carried on by foreigners, and bears as hard on their allies as on neutral nations. Whenever a peace takes place, France will be constrained to make a new convention on this subject. At present, this Court feels its importance, and the cabinet of Versailles has points of a nature so much more interesting to carry, that it takes little notice of the breach of conventions actually subsisting. By a late ordinance of the Minister of Finance, a duty of twentyfive per cent was imposed upon all produce brought in American vessels from the Havana. Mr Jay has made representations on this subject, which, I hope, will be attended to. M. Galvez appeared well disposed to withdraw them. It appears also to be the intention of the present Minister, to diminish the consumption of salt fish, to pave the way, as their friends give out, for its total exclusion at the peace, unless cured and imported by the natives; for this purpose, they have obtained bills of indulgence from the Pope, permitting the use of meat during Lent, and on other days on which it was prohibited. The price of these indulgences is proportioned to the rank of the purchaser. It is calculated, that the sale of them in the Spanish dominions will produce two millions of dollars annually; so that a double advantage is derived from this operation, the extraction of money for fish is prevented, and the revenue considerably augmented.
The present Ministry seem firmly established in their respective posts. The Count de Florida Blanca's health does not permit him to give constant application to business, but is not of so dangerous a nature as to cause any apprehension. The Ministers of the Indies and Marine keep their ground in the King's favor, although they have many enemies. If the disturbances in America should increase, the credit of the first may be weakened. The latter, although disliked by his colleagues and disapproved by France, preserves the Sovereign's good graces. He has one merit, which is his constant attention to the safety of the Spanish fleet, a merit that may fix him in his place, but which renders him odious to the nation and its allies, who wish to see it more actively employed.
I am afraid these particulars may appear trivial to Congress, to whom I should be happy to make more important communications; these are not to be obtained but by the dint of money, or by a long residence and intimacy with persons in the various departments of government. The first we have not for the most pressing exigencies, and the latter, our at present doubtful situation at this Court precludes us from in some degree; although neither attentions nor endeavors have been omitted to make useful acquaintances.
I have the honor to be, &c.