ply. Dr. Franklin, during his residence here, having been authorized to borrow large sums of money, the disposal of that money seemed naturally to rest with him. It was Mr. Grand's practice, therefore, never to pay money, but on his warrant. On his departure, Mr. Grand sent all money drafts to me, to authorize their payment. I informed him, that this was in no wise within my province, that I was unqualified to direct him in it, and, that were I to presume to meddle, it would be no additional sanction to him. He refused, however, to pay a shilling without my order. I have been obliged, therefore, to a nugatory interference, merely to prevent the affairs of the United States from standing still. I need not represent to you the impropriety of my continuing to direct Mr. Grand longer than till we can receive your orders, the mischief which might ensue from the uncertainty in which this would place you as to the extent to which you might venture to draw on your funds here, and the little necessity there is for my interference. Whenever you order i sum of money into Mr. Grand's hands, nothing will be more natural than your instructing him how to apply it, so as that he shall observe your instructions alone. Among these, you would doubtless judge it necessary to give him one standing instruction, to answer my drafts for such sums as my office authorizes me to call for. These would be salary, couriers, postage, and such other articles as circumstances will require, which cannot be previously defined. These will never be so considerable as to endanger the honor of your drafts; I shall certainly exercise in them the greatest caution, and stand responsible to Congress.

Mr. Grand conceives that he has suffered in your opinion by an application of two hundred thousand livres, during the last year, differently from what the office of finance had instructed him. This was a consequence of his being thought subject to direction here, and it is but justice to relieve him from blame on that account, and to show that it ought to fall, if anywhere, on Dr. Franklin, Mr. Adams, and myself. The case was thus : The moneys here were exhausted, Mr. Grand was in advance about fifty thousand livres, and the diplomatic establishments in

France, Spain, and Holland, subsisting on his bounties, which they were subject to see stopped every moment, and feared a protest on every bill. Other current expenses, too, were depending on advances from him, and though these were small in their amount, they sometimes involved great consequences. In this situation, he received four hundred thousand livres, to be paid to this government for one year's interest. We thought the honor of the United States would suffer less by suspending half the payment to this government, replacing Mr. Grand's advances, and providing a fund for current expenses. We advised him so to do. I still think it was for the best, and I believe my colleagues have continued to see the matter in the same point of view. We may have been biassed by the feelings excited by our own distressing situation. But certainly, as to Mr. Grand, no blame belongs to him. We explained this matter in a letter to Congress, at the time, and justice requires this explanation to you, as I conjecture that the former one has not come to your knowledge.

The two hundred thousand livres retained, as before mentioned, have been applied to the purposes described, to the payment of a year's interest to the French officers (which is about fortytwo thousand livres), and other current expenses, which, doubtless, Mr. Grand has explained to you. About a week ago, there remained in his hands but about twelve thousand livres. In this situation, the demands of the French officers for a second year's interest, were presented. But Mr. Grand observed there were neither money nor orders for them. The payment of these gentlemen, the last year, had the happiest effect imaginable. It procured so many advocates for the credit and honor of the United States, who were heard in all companies. It corrected the idea that we were unwilling to pay our debts. I fear that our present failure towards them will give new birth to new imputations, and a relapse of credit. Under this fear, I have written to Mr. Adams to know whether he can have this money supplied from the funds in Holland; though I have little hope from that quarter, because he had before informed me, that those

funds would be exhausted by the spring of the present year, and I doubt, too, whether he would venture to order these payments, without authority from you. I have thought it my duty to state these matters to you.

I have had the honor of enclosing to Mr. Jay, Commodore Jones's receipts for one hundred and eighty-one thousand and thirty-nine livres, one sol and ten deniers, prize money, which (after deducing his own proportion) he is to remit to you, for the officers and soldiers who were under his command. I take the liberty of suggesting, whether the expense and risk of double remittances might not be saved, by ordering it into the hands of Mr. Grand, immediately, for the purposes of the treasury in Europe, while you could make provision at home for the officers and soldiers, whose demands will come in so slowly, as to leave the use of a great proportion of this money, for a considerable time, and some of it forever. We could, then, immediately quiet the French officers.

I have the honor to be, with the most perfect respect and esteem, Gentlemen, your most obedient, and most humble servant.

TO JOHN JAY.

January 27th, 1786.

SIR, I had the honor of addressing you by the way of London on the 2d instant. Since that, yours of December 7th, has come to hand. I have now the pleasure to inform you that Mr. Barclay having settled, as far as depended on him, the account of Monsieur de Beaumarchais, left Paris on the 13th instant, to proceed to Morocco. Business obliged him to go by the way of L'Orient and Bourdeax, but he told me he should not be detained more than one day at either place. We may probably allow him to the last of February to be at Morocco.

The imperial ambassador some days ago observed to me, that about eighteen months ago Dr. Franklin had written to him a

letter proposing a treaty of commerce between the Emperor and the United States; that he had communicated it to the Emperor, and had answered to Dr. Franklin, that they were ready to enter into an agreement for that purpose, but that he had received no reply from him. I told him I had been informed by Dr. Franklin of the letter making the proposition, but that this was the first I had ever hear of an answer expressing their readiness to enter into negotiations. That on the contrary, we had supposed no definitive answer had been given; and that, of course, the next move was on their side. He expressed astonishment at this, and seemed so conscious of having written such an answer, that he said he would have it sought for and send it to me for my inspection. However, he observed that the delay, having proceeded from the expectation of each party that the other was to make the next advance, and the matter being understood, the two parties might now proceed to enter into the necessary arrangements. I told him that Congress had been desirous of entering into connections of amity and commerce with his Imperial Majesty; that for this purpose they had commissioned Mr. Adams, Dr. Franklin and myself, or any two of us, to treat; that reasons of prudence had obliged them to affix some term to our commissions, and that two years were the term assigned; that the delay, therefore, which had happened, was the more unlucky, as these two years would expire in the ensuing spring. He said he supposed Congress could have no objection to renew our powers, or perhaps to appoint some person to treat at Brussels. I told him I was unable to answer that, and we omitted further communication on the subject till he should send me his letter written to Dr. Franklin. A few days after his Secretaire, d'Ambassade called on me with it. It was the letter of September 28, 1784, (transmitted in due time to Congress,) wherein he had informed Dr. Franklin that the Emperor was disposed to enter into commercial arrangements with us, and that he would give orders to the government of the Netherlands to take the necessary measures. I observed to Monsieur de Blumendorff (the secretary), that this letter showed we were right in our expectations of their taking

the next step. He seemed sensible of it, said that the quarrel with Holland had engrossed the attention of government, and that these orders relating to the Netherlands only, it had been expected that others had been given which should include Hungary, Bohemia and the Austrian dominions in general, and that they still expected such orders. I told him that while they should be attending them, I would write to Mr. Adams in London, my colleague in this business, in concert with whom I must move in it. I think they are desirous of treating, and from questions asked me by Monsieur de Blumendorff, I suspect they have been led to that decision, either by the resolutions of Congress of April 1784, asking powers from the States to impose restraints on the commerce of States not connected with us by treaty, or else by an act of the Pennsylvania Assembly for giving such powers to Congress, which has appeared in the European papers. In the meantime, I own myself at a loss what to do. Our instructions are clearly to treat. But these made a part of a system wise and advantageous, if executed in all its parts, but which has hitherto failed in its most material branch,-that of connection with the powers having American territory. Should these continue to stand aloof, it may be necessary for the United States to enter into commercial regulations of a defensive nature. These may

be embraced by treaties with the powers having no American territory, and who are most of them as little commercial as perhaps not to offer advantages which may countervail these embarrassments. In case of war, indeed, these treaties will become of value, and even during peace the respectability of the Emperor, who stands at the head of one of the two parties which seem at present to divide Europe, was a lustre to those connected with him a circumstance not to be absolutely neglected by us under the actual situation of things. a letter from Mr. Adams on this subject. Not trusting the posts, however, and obliged to wait private conveyances, our intercommunication is slow, and in the meanwhile our time shortening fast. I have the honor to enclose to you a letter from the Count de Vergennes, in favor of Mr. Dumas. With the services of this gentleman to the United