Madrid, April 14th, 1782.

Sir,

A violent defluxion of the eyes, which was epidemical here this winter, incapacitated me for near three weeks after the date of my last from writing, and the perplexed and uncertain situation of our affairs here for some time past, induced me not to do myself the honor of addressing you, until I could inform you in what manner our difficulties were likely to have a period. Indeed, during this interval, my time was so much engaged by the bills of exchange accepted by Mr Jay, and the conversations I held with, and the visits I was obliged to make to the various persons interested in this affair, that I had very little leisure left for other occupations.

On the 27th of February, I expressed my apprehensions for the fate of our accepted bills, although I could not but hope, that either this Court or that of France, would interfere in time to relieve us from this cruel mortification. Whether this Court withheld its aid, from expectation that the French Ambassador was secretly instructed to assist us, as on a former occasion, in case of extreme necessity; whether their wants, which are pressing, occasioned their indecision; or whether it was produced by the secret influence and artifices of ill disposed persons, I will not pretend to say; but the fact is, that notwithstanding the frequent representations of Mr Jay, and as frequent good offices of the French Ambassador, the Minister did not, until the day before Mr Jay found himself under the absolute necessity of protesting the bills, authorise verbally the Count de Montmorin to inform Mr Jay, that if M. Cabarrus persisted in his former intentions of making the necessary advances, he would see him repaid in ten or twelve months, to the amount of forty or fifty thousand current dollars. It must be observed that this consent was given the day after M. Del Campo had been informed by M. Cabarrus, at his own house, of the terms on which he would make the advances in question. These terms were different from those he had frequently repeated to Mr Jay and myself, and which Mr Jay made known to the Minister; but I believe the conversations with the latter, had excited apprehensions of his not being reimbursed even in the time he had originally proposed.

These apprehensions were augmented by finding that the French Ambassador was not authorised to extricate us from our distress, although the Court of France was apprized of our situation. I early remarked these fears, and endeavored to remove them by every means in my power. I was clearly of opinion, however, that after the conversation, above mentioned, with M. Del Campo, no reliance could be placed on his assistance for our relief, and informed Mr Jay of my conjectures on this subject, as I had done from the first moment I discovered M. Cabarrus's fears and apprehensions. This disappointment, constrained Mr Jay to protest a number of bills, some of which the holders had the complaisance and indulgence to keep by them near three weeks, in order to give time to Mr Jay to make arrangements for their payment. Indeed, the whole commercial interest here, behaved in a manner that scarce could be expected from persons who have so little connexions with our country, and expressed their indignation and astonishment, that the Court should expose to this mortification, for a sum so trifling, a country united with them against a common enemy. The foreign Ministers were not less surprised, and this incident, I believe, furnished materials for their despatches at the time, and has occasioned much conjecture since.

A letter from Dr Franklin, authorising Mr Jay to draw upon him for the payment of the bills he had accepted, soon established our credit to the general satisfaction of everybody who have no political connexions to influence their opinion, and the news from England of the address of the House of Commons to the King, to put an end to offensive operations in America, and of the general fermentation in Ireland, will probably give a more favorable aspect to our affairs here, as has been the case elsewhere. Courier after courier arrived from the Count d'Aranda, the Spanish Ambassador at Paris, and several cabinet councils were held immediately after their respective arrivals. Each of these couriers announced the various appearances of a change in the British Cabinet, and probably gave some intelligence of the overtures from Great Britain, made to Dr Franklin.

The flattering prospect of our affairs in Holland, may contribute also to accelerate the conduct of others with respect to the United States. The Minister promised Mr Jay, some time ago, that the conferences with M. Del Campo, on the subject of a treaty should positively take place at Aranjues, and the actual crisis of affairs renders it probable, that more reliance may be placed on this than on former assurances; but after the experience we have had of the dilatoriness of this Court, I cannot flatter myself, that the treaty will be very speedily concluded, for I have been led to resume my former opinion, that this Court has wished, and still desires, to delay the acknowledgment of our independence, until a general treaty of peace shall take place. The Dutch Minister sent for me immediately after receiving advice, that Friesland had resolved to admit Mr Adams in a public character, and told me he had not the least doubt of the other provinces doing the same. Indeed I heard extracts of letters read, from persons of high repute in this republic, who speak of this affair, as a matter determined, and which will meet with no other obstruction, than what arises from the usual formalities and delays in the constitution of that republic. The Swedish Minister daily expects news from his Court, which he tells me he hopes will prove agreeable.

These changes in the political situation of the United States and Great Britain, I believe are not seen by Russia and Denmark with pleasure, if I may be allowed to form conjectures from the conduct and sentiments of their respective Ministers here, who cannot conceal their chagrin, on the reception of any news favorable to France, Spain, or America. Indeed most of the neutral nations seem to have a particular aversion to this Court, excited as they say, by its conduct with respect to the capture and detention of their vessels. As I have an opportunity of seeing themselves, or their Secretaries very often, and am on an intimate footing with the latter, I am frequently a witness of their complaints and murmurs; Congress need not therefore conclude, that their inattention to Mr Jay's Memorial, is pointed or a proof of its ill will, for I have seen near eighty Memorials from a Minister more nearly connected with them than we are, few of which have been attended to.

The capture of a Danish vessel laden with powder and artillery, with two King's officers on board, and instructions from the Admiralty, has excited the clamors of the Danish Minister here, who despatched a courier to Copenhagen on the occasion. I am promised a statement of the case presented by the Minister above mentioned to those of the armed neutrality, and copies of two letters from the Count de Florida Blanca, one to the Danish Minister, and the other to the neutral Ministers here, which if obtained shall accompany this letter.

Great preparations are making for the siege of Gibraltar. The Duc de Crillon is to command in chief, and it is said will have under his orders, from twentyfive to thirtytwo thousand men, including the French troops at Mahon; the place is to be attacked by sea and land, and I hear twelve ships are bought by government to be fitted up and serve as floating batteries. This operation will probably commence in July, a month favorable for it on account of the calms which then prevail. The loan proposed by this Court in Holland is not likely to meet the expected success. The armaments they have equipped and are equipping, and the expensive preparations for the siege of Gibraltar, straiten them exceedingly for funds. The difficulties they encounter in procuring money, and the alarming state of their colonies, may probably dispose them to peace by the end of the present campaign, but it is likely their claims will be great, and thought extravagant by all the neutral nations.