Our further prospects of borrowing are too uncertain to be stated. As this is a private loan it is reasonable to suppose, that the clamors of the public creditors here, when heard in Holland, will have some effect upon our credit there.
France.
In France various applications were made, and several grants obtained previous to the year 1779, though they are not clearly stated, from the irregular manner in which the books of the Secret Committee, and the Committee of Foreign Affairs were formerly kept. It appears, that the whole sum obtained from France previous to the year 1780, exclusive of one million obtained on a contract for tobacco with the Farmers-General amounted to nine millions of livres. In November, 1780, Congress applied to the Court of France for an aid of twenty five millions of livres in money, exclusive of a considerable supply of arms, ammunition, and military stores, which they declared would fall short of their wants for the ensuing year without the greatest internal exertion.
They sent Mr Laurens as a Minister on this special occasion, and in this year and the year 1781, Congress received fourteen millions of livres, including the goods and military stores, without counting the loan opened for the United States in Holland, of which mention is made before.
But as this sum fell very far short of our wants, Dr Franklin was instructed on the 8th of February, 1782, to borrow twelve millions of livres. In answer to which, that Minister, writing to me on the 25th of June, after acknowledging the receipt of my letters, one of which was written on the subject of the above instruction, says, "the second (the second letter) enforces some resolutions of Congress sent me with it respecting a loan of twelve millions of livres to be demanded of France for the current year. I had already received the promise of six millions, together with the clearest and most positive assurances, that it was all the King could spare us, that we must not expect more, that if drafts and demands came upon me beyond that sum, it behooved me to take care how I accepted them, or where I should find funds for the payment, since I could, certainly not be further assisted out of the royal treasury. Under this declaration, with what face could I ask for another six millions? It would be saying, 'you are not to be believed, you can spare more, you are able to lend me twice the sum, if you were but willing.' If you read my letter to Mr Morris of this date, I think you will be convinced how improper any language capable of such a construction would be to such a friend."
On the 14th of September Congress were pleased to direct that four millions of dollars be borrowed in Europe, exclusive of the loan negotiating in Holland. A copy of which resolution is directed to be communicated to his Most Christian Majesty, with directions to Dr Franklin to assure his Majesty of the high sense the United States in Congress entertain of his friendship and generous exertions, their reliance on a continuance of them, and the necessity of applying on the present occasion to him. And on the 23d of September Congress resolved further, in answer to the above letter from Dr Franklin, and one of a similar nature to the Superintendent of Finance of the same date, that, notwithstanding the information contained in those letters, it is the direction of Congress, that he use his utmost endeavors to effect the loan, which, by the resolve of the 14th instant is to be negotiated.
I should observe that in the above statement of the grants made to the United States, I have not distinguished between loans and gifts, but included both in the gross sums above mentioned, though about eight millions of that granted by France has been given, without any expectation of being repaid.
It is unnecessary to draw those inferences from the above facts, which they naturally suggest. They cannot escape your Excellency's observation. I can only wish, that the low state of our credit abroad may excite us to such internal exertions as must be its best support. Those only can borrow with dignity, who give unequivocal proofs of the design to repay their debts with honor.
I have the honor to be, &c.
ROBERT R. LIVINGSTON.