St. Christopher, Nevis, and Montserrat, conquered by the forces of his majesty. The term of six months which had been granted to the capit ulators for receiving the vessels which they expected from England, and for sending them back under a neutral flag, even to the ports of Great Britain, expired some time ago, and thus no inconvenience can result from this stipulation. Some of the said capitulations gave power to the governors to authorize, by particular permissions even after the expiration of the six months, exportations from these conquered islands to the ports of the enemy.

The undersigned has the honor of informing the Secretary of Foreign Affairs that, in consequence of orders given to the governor-general of these islands, these permissions will not be given; and, therefore, nothing will prevent the entire execution of the resolutions of Congress in relation to the importation of English merchandise into this country. Congress may be assured that his majesty will concur in all measures of this kind which shall have for their object the prevention of commerce with Great Britain.

LUZERNE.

Livingston to La Fayette.*

PHILADELPHIA, January 10, 1783.

DEAR SIR: I was honored by yours of the 14th of October last. It contains much useful information, and upon the whole exhibits a pleas ing picture of our affairs in Europe. Here the scene is more chequered with good and evil; the last I think predominates. The want of money has excited very serious discontents in the army. They have formed committees. A very respectable one, with General McDougal at their head, is now here. Their demands, though strictly just, are such as Congress have not the means of satisfying. The States upon whom they call complain of inability. Peace is wished for with more anxiety than it should be; wearied out with the length of the war, the people will reluctantly submit to the burdens they bore at the beginning of it; in short, peace becomes necessary. If the war continues, we shall lean heavier upon France than we have done. If peace is made, she must add one obligation more to those she has already imposed. She must enable us to pay off our army, or we may find the reward of her exertions and ours suspended longer than we could wish.

Charleston is at length evacuated; the enemy made a convention with General Greene, and were suffered to depart in peace. In one of the papers I send you you will see the general orders at going off.

The embarkation of your army before the war in this country had closed gave me some pain. Their stay might have answered useful political purposes had they been at hand to operate against New York, which they will not otherwise quit.

*MSS. Dep. of State; 5 Sparks' Dip. Rev. Corr., 402.

Congress saw this in its true light, but were too delicate to mention it. I enclose their resolutions on being apprized of it. You speak of operations in America. I agree with you that they are devoutly to be wished both by France and by us; but if they are to depend upon operations in the West Indies, it is ten to one but they fail. The machine is too complex. If it is to be worked in any part by Spanish springs the chance against it is still greater, for whatever the latter may be in Europe, in the West Indies they lose their elasticity.

The great cause between Connecticut and Pennsylvania has been decided in favor of the latter. It is a singular event. There are few instances of independent states submitting their cause to a court of justice. The day will come when all disputes in the great republic of Europe will be tried in the same way, and America be quoted to exemplify the wisdom of the measure.

Adieu, my dear sir; continue to love this country; for though she owes you much, she will repay you all with interest when in ages to come the records you with her patriots and heroes.

I have the honor to be, dear sir, with the sincerest esteem and regard, &c.,

ROBERT R. LIVINGSTON.

Morris to Franklin.*

OFFICE OF FINANCE, January 11, 1783.

SIR: On the 9th instant, from an investigation of Mr. Grand's account, then lately received, I found that after making due allowance for loanoffice bills, &c., which might still come upon him, my drafts and those which I have directed would exceed by something more than six millions (exclusive of the interest payable by him in November on the Dutch loan) any funds which he could be possessed of. It appeared also by indirect information so late as in the month of September that the loan opened by Mr. Adams had not produced above three millions, so that unless he had met with further success there would be a deficiency of three millions.

Had the court granted us twelve millions in the first instance, had Mr. Adams's loan produced six millions, had M. de Beaumarchais' bills been provided for without recurrence to the American banker, or, finally, had the heavy deduction made by those bills been replaced, this disagreeable thing would not have happened. Presuming that the loan of the last year was exclusively at my disposition, I drew during the year to the amount of it, and I am convinced that all my bills and those drawn by my authority will have been paid. Rely on it that, as I told you in a former letter, I have acted under the influence

*6 Sparks' Dip. Rev. Corr., 573.

of dire necessity, and this you will be convinced of by a few out of many circumstances.

Enclosed you have a general statement of the public account until the year 1781, on which you will observe that the army was fed principally, though scantily, by the specific supplies called for at different previous periods, and that there remained in the treasury near three hundred thousand dollars, being part of the money which Colonel Laurens brought with him from France. I also enclose to you the copy of a letter written to Congress on the 21st of October and of its several enclosures, which will need no commentary; or if it did, I would only add, that I have been obliged to sell part of the goods which arrived here from Holland, in order to raise so much money as would save my sinking credit from destruction. I would go into a detail of the various measures pursued to stimulate the exertions of the States, but to do this with accuracy would be to give a tedious history of my whole administration. Whatever expedient could suggest itself which might have that desirable effect I have tried, and I do assure you that when I look back at the scenes I have passed through they strike my own mind with astonishment. As soon as I can get the accounts made up I will transmit to you the total of our expenditures; but to transmit, or even relate, our hazards and difficulties would be impossible.

Even at this moment I am making further exertions to bring our unwieldy system into form and ward off impending evils; but what the success may be, Heaven only knows. Imagine the situation of a man who is to direct the finances of a country almost without revenue (for such you will perceive this to be) surrounded by creditors whose distresses, while they increase their clamors, render it more difficult to appease them; an army ready to disband or mutiny; a government whose sole authority consists in the power of framing recommendations. Surely it is not necessary to add any coloring to such a piece, and yet truth would justify more than fancy could paint. The settlement of accounts, long and intricate beyond comprehension, becomes next to impossible from the want of that authority, which is on the verge of annihilation, from those confusions which nothing can dissipate except the complete settlement of accounts and an honest provision for payment.

Upon discovering the situation of our affairs in the manner already mentioned I laid them before Congress. You will know the result. The Secretary of Foreign Affairs will, doubtless, transmit their act; to which I must add this further communication, that I expect my bills will amount to a million within a month from this date. There are cases where nothing worse can be apprehended from a measure than what would inevitably happen without it, and our present position is one of them. An immediate command of money is alike necessary to our present existence and future prospects. In Europe, when this letter arrives, you will know decidedly whether we are to expect peace

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or war. We must prepare for the latter. By so doing we may forward negociations for peace, and at the worst will only have incurred some additional expense; whereas by neglecting it we risk the chance of being taken unawares, and paying very dearly the penalties of neglect. But, sir, notwithstanding these reasons and many others will justify every counsel and every act however irregular in other respects, I would not draw one more bill, and I would boldly hazard every consequence of the omission, if I were not persuaded that they would be paid. On this occasion your sovereign will expect your most vigorous exertions, and your country will, I trust, be indebted to you in a degree for her political existence.

I am, sir, &c.

ROBERT MORRIS.

Dumas to Livingston.*

THE HAGUE, January 11, 1783.

SIR: This morning their noble and grand mightinesses adopted a resolution conformable to the report hereto annexed relative to the mission of a minister plenipotentiary to the United States with instruc tions to their deputies of the province in the States-General to press the conclusion of this matter by the States. This evening, between ten and twelve o'clock, one of the gentlemen, coming to take leave of me until Tuesday week, concerted with me the measures it would be proper to take during his absence to make the choice fall, if the plan succeeds, on a person who will be as agreeable to the United States as he is es teemed by the patriots of this country. I shall give information of it by letter next Tuesday to Mr. Adams.

Yesterday arrived some despatches from the plenipotentiaries of the republic at Paris, with the reply of his Britannic majesty to the preliminaries which had been proposed. This reply is not satisfactory. I am, sir, &c.,

DUMAS.

Morris to Franklin.t

OFFICE OF FINANCE, January 13, 1783. DEAR SIR: I have received, in addition to those already acknowl edged, your letters of the 12th of August, 26th of September, and 14th of October. I should, therefore, regularly have received two copies of the contract entered into on the 16th of July between you and the Count de Vergennes, but I suppose it has been omitted through mis

*5 Sparks' Dip. Rev. Corr., 365.

+ MSS. Dep. of State; 6 Sparks' Dip. Rev. Corr., 575.

take in both the letters which refer to it. I lament this the more, as no one copy of it has yet arrived, and consequently the Congress cannot do what I am persuaded they would on the occasion. But although from this circumstance they do not make professions, yet as far as I know the sentiments of that body they are penetrated with gratitude. And you hazard nothing in making to the King the fullest assurances of their desire to repay the obligations they have received and gratify their affection for his person and family by services and benefits. You will oblige me much if (together with the contract in question) you will send a statement of the Farmer-General's account and of the agreement with them.

You tell me that the losses in the West Indies prevent you from obtaining farther aid. It is, therefore, to us a double loss. As to the precaution you give me about my banker, you will find that before the receipt of Mr. Grand's accounts I had drawn on him beyond his funds. I have this day entered into an explanation with the minister on that subject, and I enclose you the copy of my letter, as also of another paper delivered to him, which may be worth your attention. In my turn I rely upon your promise of exertion to pay my drafts. If one bill should be protested I could no longer serve the United States.

With respect to the apprehension you express as to my bills, I do not perceive the matter in the same point of light with you. The list of my bills are transmitted to Mr. Grand by various opportunities, and they will check any which might be forged or altered.

I shall take due notice of what you say about your salary, and will enclose the bills to you. The amount will depend on the course of exchange during the war. You will be a gainer, and after the peace you may perhaps lose some trifle, but not much, because remittances might then be made in specie, should the exchange be extravagantly high. You will readily perceive that although the fluctuations of exchange are in themselves of very little consequence to the individuals who may be connected with government, they become important at the treasury, partly from the numbers of payments and consequent amount, but more so because they would introduce a degree of intricacy and perplexity in the public accounts, which are generally either the effect or the cause of fraud and peculation. Besides, there is no other way of adjusting salaries than by a payment of so much at the treasury, unless by rating them in the currency of every different country as livres, dollars, guild. ers, rubles, &c. The late mode of rating them in pounds sterling required a double exchange. For instance, the number of livres to be given in payment of one hundred pounds sterling at Paris on any given day depends on the then rate of exchange between Paris and London, and the value of those livres here depends on the exchange between Paris and Philadelphia.

I pray you, sir, to accept my sincere thanks for the kind interest you