of simply removing from one warehouse to another, without declaration, to forfeit the privileges of the place of deposit, and be subject to the payment of all duties.

Formalities to be observed at the time of embarcation. Article 8th and 9th of the letters patent of 1777.

The said merchants and waggoners shall be bound to see, that their wines be visited before they take them away from the place of deposit, by the clerk of the Farms, and not to put them on board any vessel but in presence of said clerk; to give their bond at the office of the Farms, of the place of embarcation; to report within a year at furthest, for the wines destined for the colonies, a certificate of their being landed in the French Islands or colonies; which certificate shall be written on the back of the permit, and signed by the Governor and Intendant, or by the commandants and commissaries subdelegated in those quarters, and by the clerk of the Farms of the demesnes in the west, under penalty of paying four times the amount of the duties.

ARTICLE IV. His Majesty moreover orders, that the merchants and waggoners be bound, on entering into Brittany, to make declaration to the inspectors of the Farmers of the duties, of the quantity and quality of the wine, which shall be brought there; as also to receive on board the boats that shall transport them, two clerks appointed by the said Farmers, who are expressly enjoined, under penalty of severe punishment, to accompany the said wines as far as the place of their deposit, to observe that they be not drawn off, nor from one cask to another, and for this purpose, to use every necessary measure until the casks are arrived at said place of deposit; and the said casks shall not be removed from said deposit, without

being accompanied by the same clerk of said Farmers, who shall be present at their embarcation; for which purpose the merchants and waggoners shall be bound to take a permit for embarcation, both from the Farmers of the duties and the chief of the Farmers General.

ARTICLE V. His Majesty orders, that the said wines shall only be deposited in the ports of Nantes and Painbeuf; and that in case of drawing off or substitution, in the road or at the place of deposit, upon verbal declaration being made thereof, and duly affirmed to, either by the clerk of the chief of the Farmers General, or by those of the Farmers of the duties, the confiscation of the wines and boats shall be pronounced, as well on the proprietors of the wine, as the masters or conductors of the boats, with a fine of five hundred livres.

ARTICLE VI. His Majesty reserves to himself the power of prescribing such other formalities, as shall be judged necessary for the preservation of the Farm of the duties, belonging to the province of Brittany, after the observations which the intermedial commission of the States of the said province, shall address to the Comptroller General of the Finances, on the contents of the present decree, within the space of three months, from the date of the publication. His Majesty enjoins the Intendants and commissaries, to assist in carrying the present arrêt into execution, which shall be printed, published, and fixed up wherever it shall be necessary, and the necessary letters patent shall be made out concerning it.

Done in the King's Council of State, his Majesty being there present, held at Fontainebleau, 11th November, 1785.

THE BARON DE BRETEUIL.

FROM THOMAS JEFFERSON TO JOHN JAY.

Sir,

Paris, November 12, 1786.

In a letter which I had the honor of writing you on the 26th September, I informed you, that a Dutch company were making propositions to the Minister of Finance here, to purchase, at a discount, the debt due from the United States to this country. I have lately procured a copy of their memoir, which I now enclose. Should Congress think this subject worthy their attention, they have no time to lose, as the necessities of the Minister, which alone has made him to listen to this proposition, may force him to a speedy conclusion. The effect which a payment of the whole sum would have here, would be very valuable. The only question is, whether we can borrow it in Holland, a question which cannot be resolved but in Holland. The trouble of the trial, and expense of the transaction, would be well repaid by the dispositions, which would be excited in our favor, in the King and his Ministers.

The United States have borrowed a large sum of money from France, for which they pay an interest until they re-imburse it, at the rate of six per cent. per annum. It is not known to us whether the periods of this re-imburse

ment are fixed, or whether they are left to the convenience of the United States; the quota of this sum is also unknown. It is supposed that it cannot be less than twenty-four millions, and that the period of re-imbursement is not near. It is thought that the two nations consider their mutual benefit, and upon this supposition an arrangement of the debt of the United States is proposed, which appears to suit the interest of both these powers.

On the part of France, the want of money to facilitate its re-imbursements and improvements, should induce her to fix a certain price for the actual return of so large a

sum.

On the part of the United States, the scarcity of money which they experience, and the want of it, which the natural extension of their situation occasions, must render every measure precious that will bring into circulation the sum they have borrowed, and under such a form that this circulation will take place, as well in the United States as elsewhere.

This mode offers of itself. It consists in converting the American debt into bills, payable to the bearer, in sums from five hundred to a thousand French livres, and annexing dividends to these bills, for receiving the interest in such places as shall be agreed and fixed upon. It is by no means to be doubted, but that commerce, and the Europeans who would settle in the United States, would carry there great numbers of these bills, which would probably be re-imbursed there. The United States would find two great advantages from this operation. The first, by acquiring in their circulation at home, a paper, which, by the full credit it would have, would answer all the purposes of cash. Secondly, being able to pay

at home, a part of the debt and the interest, and to reduce it by degrees, by means of the purchase of lands with these bills, payable to the bearer; for the speculators in land could pay for them in this way with advantage, both on account of their being able to procure these bills in Europe, on better terms than specie, and that it would particularly suit the United States to encourage the exchange of uncultivated lands, which they have to sell, for bills which they must reimburse, and which, in the meantime, costs them an annual interest.

These instances will prove the great benefit which France would procure for the United States, by converting the credit she has given them, into bills payable to the bearer, which might be brought into circulation.

With respect to the benefit France would reap, it is very probable that she might dispose of all these bills at once, to a company who would take them up in consideration of some sacrifice and facilities, which are customary in transactions of such magnitude. It must be observed here, that this arrangement is determined, upon the presumption, as far as the nature of the case will admit, that this debt is recoverable.

It will, therefore, follow, that France will obtain for the purposes of Government, a speedy return of a sum of money which will proportionably lessen the loans, which may be otherwise necessary.

On the first reflection, it might appear that France ought not to sell her debt with the United States, especially on terms favorable to the purchasers, but on conditions of not being obliged to guaranty the same against accidents, which may render it doubtful, as this might occasion a distrust against the credit of the United States, VOL. III.-23