TO ROBERT R. LIVINGSTON.

Madrid, February 27th, 1782.

Sir,

I did myself the honor of addressing you the 18th instant, which I enclosed in the first copy of this. My letter of the 18th contained all the intelligence of the state of our affairs in Holland, which had come to my knowledge. My mind now is full of another object, for I have the mortification to inform you, that unless Mr Jay is enabled by Dr Franklin in a few days to pay the drafts he has accepted, he will be obliged to stop payment. I am persuaded the latter has done everything in his power to extricate us from this cruel situation, but he has had so many other bills to answer, and France is itself so pushed for money, that hitherto he has not been able to succeed, nor indeed to pay us regularly our salaries.

This Court has at length consented to pay us the balance of the three millions, promised last year, which amounts to near twentysix thousand dollars, but this money is in some sort appropriated to the repayment of the advances made for two months past, by M. Cabarrus, who, after the conversation he has had with the Minister, is discouraged from making equal advances. Less than twenty thousand pounds sterling would now pay all our debts in this country. I shall not despair until the bills are refused, although after what we have experienced here, I have little ground to hope. The Count de Florida Blanca has engaged to take such measures, as that Mr Jay shall not be personally exposed, which, without the interference of the Court, might be the case, as he is not acknowledged in a public character.

Mr Jay has not yet received any notice, that M. Del Campo's instructions are ready. That gentleman has now been near four months named for this business. It is now confidently asserted, that the works at Mahon are to be destroyed. Two ships of the line, and two frigates, have sailed from Cadiz, to escort the transports with troops from Minorca, which, it is said, are to be employed in the siege of Gibraltar. I know of a certainty, that the Court has given orders, to amass considerable sums of money in Andalusia. The Count de Guichen sailed on the 10th instant, and we expect every day to hear of his arrival at Cadiz, with five ships of the line. The English East India convoy sailed the 26th ult., and consists of six ships of the line, a frigate, and nineteen transports and ships of the Company. The letters and papers I have received the last posts from France and Holland, assert that since the arrival of Lord Cornwallis and Arnold in England, the king is resolved to continue an offensive war in America at every hazard. As this intelligence corresponds with the character of the king, and the officers above mentioned, some credit may be given to it. It has been asserted in the English papers, that the king of Great Britain was negotiating as Elector of Hanover with Saxony, to take into pay ten thousand of its troops, to replace the like number to be drawn from Hanover for the American war. The Chargé d'Affaires of Saxony at this Court assures me that this is false.

It is expected by the friends of America, that preparations will be early made, to repel every attack the enemy may be in force to make, and if occasion presents, to act offensively. I have nothing to add to this or my last, but that a copy of each will be delivered to you by Colonel Livingston, whose zeal, abilities, application, and prudent conduct, have acquired him general esteem, and have made his departure regretted by all who had the pleasure of his acquaintance. Mr Vaughan, who accompanies him, was strongly recommended to me by Dr Franklin, and I have found him every way worthy of his recommendation. These gentlemen will be able to give more ample details of general intelligence, than I can do by letter, and of a later date than this.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

TO ROBERT R. LIVINGSTON.