to pay on those below, because the great sums belonged to the rich, who could better bear the delay of their interest, and the smaller sums to poorer persons, who would be more hurt and make more clamor; and that the rich might be quieted by promising them interest upon their interest; all this looked as if the matter had been seriously thought on. Mr. Oswald has an air of great simplicity and honesty ; yet I could hardly take this to be merely a weak confession of their deplorable state; and thought it might be rather intended as a kind of intimidation, by shewing us that they had still that resource in their power, which he said would furnish five millions a year; but he added, our enemies may now do what they please with us, they have the ball at their foot, was his expression; and I hope they will shew their moderation and their magnanimity: he then repeatedly mentioned the great esteem the ministers had for me; that they, with all the considerable people of England, looked towards, and depended on me for the means of extricating the nation from its present desperate situation; and that perhaps, no single man had ever in his hands an opportunity of doing so much good, as I had at this present time; with much more to that purpose. He then shewed me a letter to him from lord Shelburne, partly I suppose that I might see his lordship's opinion of me, which, as it has some relation to the negociation, is here inserted. He left it with me requesting that I would communicate it to Mr. Walpole.

"Whitehall, May 21, 1782.

SIR, IT has reached me that Mr. Walpole esteems himself much injured by your going to Paris, and that he conceives it was a measure of mine, intended to take the present negociation with the court of France out of his hands, which he conceives to have been previously commenced through his channel, by Mr. Fox. I must desire that you will have the goodness to call upon Mr. Walpole, and explain to him distinctly, how very little foundation there is for so unjust a suspicion, as I knew of no such intercourse. Mr. Fox

M m

declares he considered what had passed between him and
Mr. Walpole of a mere private nature, not sufficiently ma-
terial to mention to the king or the cabinet, and will write
to Mr. Walpole to explain this distinctly to him. But if
you find the least suspicion of this kind has reached Doctor
Franklin or M. le comte de Vergennes, I desire this mat
ter may be clearly explained to both. I have too much.
friendship for Doctor Franklin, and too much respect for
the character of M. le comte de Vergennes, with which I
am perfectly acquainted, to be so indifferent to the good
opinion of either, as to suffer them to believe me capa-
ble of an intrigue, when I have both professed and observed
a direct opposite conduct. In truth I hold it in such per-
fect contempt, that however proud I may be to serve the
king in my present situation or in any other, and however
anxious I may be to save my country, I should not hesitate
a moment about retiring from any situation which required
such services. But I must do the king the justice to say,
that his majesty abhors them, and I need not tell you that
is
my fixed principle, that no country in any moment can be
advantaged by them!

I am, with great truth and regard, &c:
SHELBURNE."

In speaking farther of the ministry's opinion, of the great service it might be in my power to render, Mr. Oswald said, he had told them in one of his conversations, that nothing was to be expected of me but consistence, nothing unsuitable to my character or inconsistent with my duty. I did not ask him the particular occasion of his saying this, but thought it looked a little as if something inconsistent with my duty had been talked of or proposed.

Mr. Oswald also gave me a copy of a paper of memorandums, written by Lord Shelburne, to wit:

1st. "That I am ready to correspond more particularly with Doctor Franklin if wished.

2d. “That the enabling act is passing, with the insertion of commissioners recommended by Mr. Oswald, and on our

part commissioners will be named, or any character given to Mr. Oswald which Doctor Franklin and he may judge conducive to a final settlement of things between Great Britain and America: which Doctor Franklin as very properly says, requires to be treated in a very different manner from the peace between Great Britain and France, who have been always at enmity with each other.

3d. "That an establishment for the loyalists must always be upon Mr. Oswald's mind, as it is uppermost in lord Shelburne's; besides other steps in their favor to influence the several states to agree to a fair restoration or compensation for whatever confiscations have taken place.

4th. "To give lord Shelburne's letters about Mr. Walpole to Doctor Franklin."

On perusing this paper, I recollected that a bill had been sometime since proposed in parliament to enable his majesty to conclude a peace or truce with the revolted colonies in America, which I supposed to be the enabling bill mentioned, that had hitherto slept, and not having been passed, was perhaps the true reason why the colonies were not mentioned in Mr. Grenville's commission; Mr. Oswald thought it likely, and said that the words "insertion of commissioners recommended by Mr. Oswald," related to his advising an express mention in the bill of the commissioners appointed by congress to treat of peace, instead of the vague denomination of any person or persons, &c. in the first draft of the bill as to the loyalists. I repeated what I had said to him, when first here, that their estates had been confiscated by the laws made in the particular states, where the delinquents had resided; and not by any law of congress; who indeed had no power either to make such laws or to repeal them, or to dispense with them, and therefore could give no power to their commissioners to treat for restoration for those people. That it was an affair appertaining to each state. That if there were justice in compensating them, it must be due from England rather

1

than from America; but in my opinion, England was not under any very great obligations to them, since it was by their misrepresentations and bad counsels, that she had been drawn into this miserable war; and that if an account was brought against us for their losses, we should more than balance it, by an account of the ravages they had committed all along the coasts of America. Mr. Oswald agreed to the reasonableness of all this, and said he had, before he came away, told the ministers that he thought no recompense to those people was to be expected from us; that he had also, in consequence of our former conversation on that subject, given it as his opinion, that Canada should be given up to the United States, as it would prevent the occasion of future differences; and as the government of such a country was worth nothing, and of no importance if they could have there a free commerce, that the marquis of Rockingham and lord Shelburne, though they spoke reservedly, did not seem very averse to it: but that Mr, Fox appeared to be startled at the proposition. He was, however, not without hopes, that it would be agreed to.

We now come to another article of the note, viz. " on our part commissioners will be named, or any character given to Mr. Oswald, which Doctor Franklin and he may judge conducive to a final settlement of things between Great Britain and America." This he said was left entirely to me, for he had no will in the affair. He did not desire to be farther concerned than to see it en train; he had no personal views either of honor or profit. He had now seen and conversed with Mr, Grenville; thought him a very sensible young gentleman, and very capable of the business; he did not therefore see any further occasion there was for himself; but if I thought otherwise, and conceived he might be farther useful, he was content to give his time and service in any character or manner I should think proper. I said his knowlege of America, where he had lived, and with every part of which and of its commerce and circumstances he was well acquainted, made me think that in per

suading the ministry to things reasonable, relating to that country, he could speak or write with more weight than Mr. Grenville; and therefore I wished him to continue in the service, and I asked him whether he would like to be joined in a general commission for treating with all the powers at war with England, or to have a special commission to himself for treating with America only. He said he did not choose to be concerned in treating with the foreign powers, for he was not sufficiently a master of their affairs or of the French language, which probably would be used in treating; if therefore he accepted of any commission it should be that of treating with America. I told him I would write to lord Shelburne on the subject; but Mr. Grenville having some time since dispatched a courier, partly on account of the commission, who was not yet returned, I thought it well to wait a few days, till we could see what answer he would bring or what measures were taken this he approved of. The truth is, he appears so good and so reasonable a man, that though I have no objection to Mr. Grenville, I should be loth to loose Mr. Oswald. He seems to have nothing at heart but the good of mankind, and putting a stop to mischief; *the other, a young statesman, may be supposed to have naturally a little ambition of recommending himself as an able negociator. In the afternoon, Mr. Boeris, of Holland, called on me, and acquainted me that an answer had not been given to the last memorial from Russia, relating to the mediation; but it was thought that it would be in respectful terms to thank her imperial majesty for her kind offers, and to represent the propriety of their connection with France, in endeavoring to obtain a general peace, and that they conceived it would be still more glorious for her majesty to employ her influence in procuring a general than a particular pacification. Mr. Boeris further informed me, that they were not well satisfied in Holland with the conduct of the Russian court, and suspected views of continuing the war for particular pusposes.