The Diplomatic Correspondence of the American Revolution, Vol. 11

by Unknown

This circumstance has postponed my journey for a few days. But this is not all; the daily demands on me for money are considerable, and beyond the utmost extent of any funds I can command. The demands for past dues in compensation for past services, and the like, are rejected; but those for the prosecution of the campaign must be attended to. If, in my absence, and from that cause there be any stoppage, or considerable delay, the consequences will be equally injurious to my reputation, and to the public service.

I have before mentioned to you, that my dependence for immediate supplies of money, is on the produce of bills of exchange. I am sorry now to observe, that this dependence fails, and from a cause equally prejudicial to France and to the United States, considered in their collective capacity, though, perhaps, advantageous to individuals. Your Excellency will remember, that when I was called to the administration, the bills of your army had been selling for two thirds, and even so low as for one half of their value in Europe. What might have been the causes of this, it is not my business to inquire. The fact is incontestable. Your Excellency observed it, and endeavored to remedy the evil, by holding your own bills at five sixths. But the merchants, who had benefited by the former low rate, could not be brought at once to make so considerable an advance. They expected that the same causes, which had reduced bills to one half, must again bring them down; and, therefore, were disposed to wait the event.

I take the liberty here to observe, that the fluctuation of exchange will naturally strengthen that expectation, and nothing but steady, firm perseverance on the part of the administration, can, or indeed ought, to produce a ready sale on good terms. Bills of exchange are remitted to France in payment for European commodities. If the cost of this remittance is fixed, commerce may so far be established on true commercial principles; otherwise, it is a mere game of hazard. Sensible of this, the merchant will rather wait, with his money in his chest, the event of public necessity, than invest that money in bills, which may shortly after be bought on better terms by his more cautious neighbor. Hence it follows, that the public will really command less money than they otherwise might. Nor is that all. While the public can command the money of the merchants as fast as it comes into their hands, the servants of the public can spend that money to advantage, and the very expenditure will increase the circulation, so as to bring it again sooner into the hands of the merchant.

Your good sense, Sir, your experience, and the unremitted attention, which I have perceived you pay to every object which can relate to the service of your Sovereign, will render it necessary for me to prosecute any further these observations.

It was from a knowledge of this subject, which many years' constant attention to this business had imparted, that I saw the necessity of raising the value of bills by degrees, and, at the same time, of opposing the most inflexible firmness to every attempt at lowering their price. The bills I drew on Messrs Le Couteulx & Co., at sixty days' sight, were selling readily at four fifths, until the bills for your army were offered at thirty days' sight, and at a lower rate, This, Sir, has checked my sales; and this induces me to mention to you another matter, which will, I foresee, become of great importance.

The concurrence of many venders of bills cannot be more pernicious than the concurrence of many purchasers of supplies. The merchant cannot reason more effectually on public necessities, which he may conjecture, than the husbandman on such wants as he has ocular demonstration of. Melancholy experience has shown, that the contest between our purchasers has been extremely pernicious. What may have been the manner of conducting the business by the agents of the King, I do not positively know; but if I were to credit many tales which I have heard about it, I should believe there had been errors at least. But I know too well the weakness and impropriety of listening to slanderous reports; and I am very confident, that all possible care will be taken of the interests of his Majesty.

But, Sir, if the supplies for the French army and navy are kept in a distinct channel, I do not believe it will be possible to obtain them so cheap as they might otherwise be had. The ration consisting of one pound of bread, one pound of beef, or three quarters of a pound of pork, one gill of country made rum; and to every hundred rations one quart of salt, two quarts of vinegar; also to every seven hundred rations eight pounds of soap, and three pounds of candles, is now furnished to the United States in this city, at nine pence, with a half penny allowed over for issuing. It may perhaps cost more to furnish rations to the army, perhaps as high as ten pence or eleven pence, Pennsylvania currency.

You I suppose, Sir, can command the necessary accounts to determine what the King now pays for the subsistence of his troops; but as the French and American rations differ, I take the liberty for your further information to mention, that the parts of the ration are estimated as follows; for one pound of bread, two ninetieths of a dollar; for one pound of beef, or three quarters of a pound of pork, four and a quarter ninetieths; for one gill of rum, two ninetieths; for soap, candles, vinegar, and salt, one and a quarter ninetieths for each ration. You will also observe, Sir, that when exchange is at four fifths, one livre tournois is equal to fourteen pence and two fifths of a penny, Pennsylvania money.

I go into these details to enable your Excellency exactly to determine what is most for the interest of France, for I conceive it my duty to give you a confidential state of our affairs, whenever it can promote his Majesty's service, which I beg leave to assure you, I have every possible desire to assist; being convinced, that I can by no other means more fully comply with the wishes of the United States in Congress assembled.

I beg leave further to observe, that I have no personal wish to negotiate your bills, or to supply your fleets and armies. You must be very sensible that I have already before me a field of business sufficiently large. To extend it, will give me labor and pain, I can derive no advantage from it, nor will anything induce me to engage in it, except it be the prospect of rendering effectual service to the common cause. I make this declaration, not because I conceive it necessary to you, or from an ostentatious display of those motives, which actuate my conduct, but there may be persons to whom I am not so well known as I have the honor of being to your Excellency, and who from ignorance or interest might give to the present intentions the foulest interpretation.