Sir,
I am now to address you on a subject of very great importance. I have to detail some facts, which will demand the most serious attention from every Legislature, and from every public officer in the United States. It is my determination to administer the affairs intrusted to my care according to plans, which are founded in sincerity and truth. Convinced of the folly of our enemy, in supposing that any considerable body of men in the United States are opposed to the Revolution, I am persuaded that, in order to remove the greater part of our difficulties, the first proper step is to state them fully to the people through their representatives. It shall, therefore, be a part of my study to prepare every transaction for the public eye, so that the meanest individual may be in due time informed of those affairs, in which, as a free citizen, he is interested. The various reports, which have been circulated, the publications in the several gazettes, and even letters from some who ought to have known better, all these things have conspired to infuse an opinion, that every power in Europe is favorable to us; that great sums of money are already advanced to us, and that still greater may be obtained. Whatever may be the fate of my administration, I will never be subjected to the reproach of falsehood or insincerity. I, therefore, take the earliest moment, in which I am permitted, to make those communications, which will give an insight into our real situation.
With respect to the situation and politics of Europe, it is neither my business to detail them, nor am I in a capacity to do it with certainty. But this, at least, is certain, that the disposition of the European powers, however friendly, has been too much relied upon. As a proof I need only observe, that not a single State has acknowledged our independence except France, although our alliance with that respectable monarchy has now subsisted nearly four years. Yet that monarchy is certainly the first in the world. It is in the closest connexion with Spain. Spain has long been engaged in the war, and still longer solicited to form a union upon the basis of the treaty with France. The armed neutrality, which gave such splendid hopes to many, has not yet produced the benefits expected. I will not proceed on the ground of conjecture, nor is it necessary for me to dwell longer on our political state with respect to foreign powers. But as there is little reason to expect, so I hope there is no American, who would wish an alliance with any empire on earth, until they shall be so sensible of our importance, as to treat on principles of equality.
The public opinion, as to the conduct of other Princes and States, has greatly injured us by relaxing our exertions. But the opinion as to pecuniary aid has been still more pernicious. People have flattered themselves with a visionary idea, that nothing more was necessary, than for Congress to send a Minister abroad, and that immediately he would obtain as much money as he chose to ask for. That, when he opened a loan, hundreds would run to see who should have the honor of subscribing to it, and the like. But surely a moment's reflection should have convinced every reasonable man, that, without the clear prospect of repayment, people will not part with their property. Have the efforts in this country been so successful as to ground any hopes from abroad? Or, is it to be supposed, that foreigners will interest themselves more in our prosperity or safety, than our citizens? Or, can it be believed, that credit will be given abroad before solid funds are provided at home? Or, could it be imagined, that the disorders necessarily incident to a great revolution, would be considered as a better source of trust and confidence, than the regularity and consistency of ancient establishments?
The Congress, conformably to the public wish, have appointed Ministers, requested grants, and opened loans. In Holland they have got nothing, and in Spain but very little. Loans were expected from individuals in Holland, but nothing of that sort has been, or probably will be, obtained. Loans were not expected in Spain, unless from the King, and from him they have been solicited with but little success.
The distressed situation of public affairs forced the Congress to draw bills of exchange on their Ministers. Some were drawn on France, some on Spain, and some on Holland. The first were honored and paid, the others were accepted, but recourse was finally had to the Court of France for the payment of those also. They were drawn at long sight. The sales were slow. They were remitted from time to time, and every opportunity afforded the Ministers of the United States to obtain the moneys for discharging them, but in vain. Of consequence, these bills have been regularly referred to the Court of France for payment; and this has done us injury, by anticipating the aid, which France has been disposed to afford us, and at the same time has justly alarmed and greatly embarrassed the French Ministry.
These things it appears necessary that you should know, and your Legislature will undoubtedly draw the proper inferences. They will see how much has been suffered by delaying to call forth the resources of our own country, and relying on the empty bubbles of hope, instead of the solid foundations of revenue. They will, I trust, clearly see, that all their hopes and expectations are narrowed down to what France may give or lend. But here, as in other cases, delusion takes place of reality. We flatter ourselves with ideal prospects, and are only convinced of our folly, by the fatal crisis of national distress. In order that you may clearly understand the succor afforded by France, I enclose an account extracted from a statement lately, furnished to Congress by the Minister Plenipotentiary of his Most Christian Majesty.
You will observe that his Majesty granted to the United States a subsidy for the current year of six millions of livres; and on a representation of our distresses, he was pleased to become security for a loan to be opened on our account in Holland. And when it appeared, that there was but little probability of obtaining any money there in season, he further agreed that the sum to be borrowed should be advanced for us, in the first instance, from the royal treasury. Thus the gift and the loan together amount to sixteen millions of livres, which would, if in this country, be equal only to two millions nine hundred and sixtytwo thousand nine hundred and sixtytwo dollars, although at the rate of estimating dollars in France, it is there equal to three millions and fortyseven thousand six hundred and nineteen dollars. But at the highest rate of exchange, which has hitherto taken place, this sum if drawn for, would have amounted to no more than two millions five hundred and sixty thousand dollars. I have been thus particular with respect to the amount of this sum, because the difference of currencies very often tends to deceive those to whom their real value is not a familiar subject of attention.
The enclosed account is in livres, and the two first articles contain the total of the grant and loan, amounting to sixteen millions of livres. The remainder contains the deductions to be made; the two first articles whereof, amounting to two millions three hundred thousand livres is for the payment of the bills drawn on France, Spain, and Holland, which I have already mentioned, the produce of the sales whereof had been applied to the public service long before my appointment. The next article, being two millions of livres, is appropriated to the payment of the interest bills; wherefore, no part of it can be applied to other purposes. The fourth article, I need say nothing of here, as it has long been in the mouths of everybody. The fifth and sixth articles are for those stores, which were laden on board of four transports by order of Colonel Laurens, three of which have safely arrived, and the other put back in distress. The seventh article, is in consequence of the loss of that valuable ship, the Marquis de Lafayette, which contained a great number of public stores, the replacing of which is necessary for the army and its operations, and which will amount to that sum.
The last article contains the amount of moneys deposited to answer my drafts, which have been made from time to time, and the produce appropriated to the service of the current year. On the whole, there remains a balance of three millions and sixteen thousand four hundred and ninetynine livres. This, with the sum brought by Colonel Laurens, may be considered as of the value of about one million of dollars, which is the utmost; for it would exceed that only by twentyone thousand five hundred and seventyfour dollars, if it were now in this country.