The 9th of September, 1779, Congress proposed to obtain a subsidy from Spain during the continuance of the war, which they offered to purchase by a very important cession. Spain having hitherto declined an alliance with the United States, no such subsidiary treaty took place.
In the same month Mr Jay was instructed to borrow five millions of dollars. After long and continued solicitations, he obtained one hundred and fifty thousand dollars, and was compelled to protest bills of exchange drawn upon him by Congress, on the presumption, that Spain would certainly enable him to redeem them. This protest, which was made on the 16th of March last, was as follows;
"Mr Jay says, that when he accepted the bills hereunto annexed, he had good reason to expect to be supplied with funds necessary to pay them; that he has been disappointed in the expectation he was encouraged to entertain on this subject, and that his endeavors to obtain money, both here and elsewhere, have been unsuccessful, although the bills which remain to be paid by him, together with his other engagements, do not exceed twentyfive thousand pounds sterling, but these disappointments being unexpected, he cannot for want of time have recourse to Congress, and therefore finds himself reduced to the mortifying necessity of permitting them to be protested." These bills were redeemed after the protest, by money borrowed in France. I have reason to believe, that no money has since been obtained on account of the United States in Spain; so that the application for five millions of dollars has only been answered by the grant of one hundred and fifty thousand dollars.
Portugal.
On the 11th of January, 1782, Mr Jay was directed, in conjunction with the Superintendent of Finance, to undertake a loan in Spain or Portugal, without limiting the amount of such loan. And Mr Jay was directed to send Mr Carmichael to aid their endeavors. This power was restricted by a subsequent resolution, directing Mr Jay not to send Mr Carmichael, unless he had some prospect of succeeding. Not having sent him, it is to be presumed he had no prospect of succeeding.
Holland.
On the 26th of October, 1779, Mr Laurens, having been appointed a commissioner for that purpose, was directed to borrow a sum not exceeding ten millions of dollars. Mr Laurens having been captured, his place was supplied by Mr Adams, who had similar powers and instructions. He made several attempts to open a loan, but with so little success, that he never has transmitted an account of the amount, but has since informed me, that he had applied it in part of payment for a house purchased at the Hague. His salary has hitherto been paid by money drawn from France. A loan, however, has been opened with success in Holland on our account by his Most Christian Majesty, and under his special guarantee for ten millions of livres. Mr Adams informs Congress by a letter dated the 5th of July last, that he also has opened a loan in Holland on account of the United States for five millions of florins, but adds, that he does not expect to obtain that sum for a long time, that if he gets a million and a half by Christmas, it will be more than he expects.
In a letter of the 18th of August, the last I have received from Mr Adams, he says, that "when he receives the ratification of his treaty for a loan, there will be thirteen or fourteen hundred thousand guilders to be paid to the orders of Congress." This is confirmed by a letter to the Marquis de Lafayette, of which he sends me an extract.
As that ratification must have been received long since, we may set the loans actually made in Holland on our credit, at
| Three millions of livres, | 3,000,000 |
| Those made under the guarantee and on the credit of France, at | 10,000,000 |
| Ten millions of livres, | 13,000,000 |