mean time, I am, with much esteem and respect, Dear Sir, your affectionate friend and humble servant, TH: JEFFERSON. TO JOHN JAY. Amsterdam, March 16, 1788. SIR, In a letter of the 13th instant, which I had the honor of addressing you from this place, I mentioned in general terms, the object of my journey hither, and that I should enter into more particular details, by the confidential conveyance which would occur through Mr. Adams and Colonel Smith. The board of treasury had, in the month of December, informed me and our bankers here, that it would be impossible for them to make any remittances to Europe for the then ensuing year, and that they must, therefore, rely altogether on the progress of the late loan. But this, in the mean time, after being about one third filled, had ceased to get forward. The bankers who had been referred to me for advice, by Mr. Adams, stated those circumstances, and pressed their apprehension for the ensuing month of June, when two hundred and seventy thousand florins would be wanting for interest. In fine, they urged an offer of the holders of the former bonds, to take all those remaining on hand, provided they might receive out of them, the interest on a part of our domestic debt, of which they had also become the holders. This would have been one hundred and eighty thousand florins. To this proposition, I could not presume any authority to listen. Thus pressed between the danger of failure on one hand, and this proposition on the other, I heard of Mr. Adams being gone to the Hague, to take leave. His knowledge of the subject was too valuable to be neglected under the present difficulty, and it was the last moment in which we could be availed of it. I set out immediately, therefore, for the Hague, and we came on to this place together, in order to see what could be done. It was easier to discover, than to remove, the causes which obstructed the progress of the loan. Our affairs here, like those of other nations, are in the hands of particular bankers. These employ particular, and they have their particular circle of money lenders. These money lenders, as I have before mentioned, while placing a part of their money in our foreign loans, had at the same time employed another part in a joint speculation, to the amount of eight hundred and forty thou sand dollars, in our domestic debt. A year's interest was becoming due on this, and they wished to avail themselves of our want of money for the foreign interest, to obtain payment of the domestic. Our first object was to convince our bankers, that there was no power on this side the Atlantic which could accede to this proposition, or give it any countenance. They at length, therefore, but with difficulty, receded from this ground, and agreed to enter into conferences with the brokers and lenders, and to use every exertion to clear the loan from the embarrassment in which this speculation had engaged it. What will be the result of these conferences, is not yet known. We have hopes, however, that it is not desperate, because the bankers consented yesterday, to pay off the capital of fiftyone thousand florins, which had become due on the first day of January, and which had not yet been paid. We have gone still further. The treasury board gives no hope of remittances, till the new government can procure them. For that government to be adopted, its legislature assembled, its system of taxation and collection arranged, the money gathered from the people into the treasury, and then remitted to Europe, must extend considerably into the year 1790. To secure our credit then, for the present year only, is but to put off the evil day to the next. What remains of the last loan, when it shall be filled up, will little more than clear us of present demands, as may be seen by the estimate inclosed. We thought it better, therefore, to provide at once for the years 1789 and 1790, also; and thus to place the government at its ease, and her credit in security, during that trying interval. The same estimate will show, that another million of florins will be necessary to effect this. We stated this to our bankers, who concurred in our views, and that to ask the whole sum at once, would be better than to make demands from time to time, so small, as that they betray to the money holders the extreme feebleness of our resources. Mr. Adams, therefore, has executed bonds for another million of florins; which, however, are to remain unissued till Congress shall have ratified the measure; so that this transaction is something or nothing, at their pleasure. We suppose its expediency so apparent, as to leave little doubt of its ratification. In this case, much time will have been saved by the execution of the bonds at this moment, and the proposition will be presented here under a more favorable appearance, according to the opinion of the bankers. Mr. Adams is under a necessity of setting out to-morrow morning, but I shall stay two or three days longer, to attend to and encourage the efforts of the bankers; though it is yet doubtful whether they will ensure us a safe passage over the month of June. Not having my letters here, to turn to, I am unable to say whether the last I wrote, mentioned the declaration of the Emperor that he should take part in the war against the Turks. This declaration appeared a little before, or a little after that letter, I do not recollect which. Some little hostilities have taken place between them. The court of Versailles seems to pursue immoveably its pacific system, and from every appearance in the country from which I write, we must conclude that its tragedy is wound up. The triumph appears complete, and tranquillity perfectly established. The numbers who have emigrated are differently estimated, from twenty to forty thousand. A little before I left Paris, I received a piece of intelligence, which should be communicated, leaving you to lay what stress on it it may seem to deserve. Its authenticity may be surely relied on. At the time of the late pacification, Spain had about fifteen ships of the line nearly ready for sea. The convention for disarming, did not extend to her, nor did she disarm. This gave inquietude to the court of London, and they demanded an explanation. One was given, they say, which is perfectly satisfactory. The Russian minister at Versailles, getting knowledge of this, became suspicious on his part. He recollected that Spain during the late war, had been opposed to the entrance of a Russian fleet into the Mediterranean, and concluded, if England was not the object of this armament, Russia might be. It is known that that power means to send a fleet of about twenty-four ships into the Mediterranean this summer. He sent to the Count de Montmorin, and expressed his apprehensions. The Count de Montmorin declared, that the object of Spain in that armament was totally_different; that he was not sure she would succeed; but that France and Spain were to be considered as one, and that the former would become guarantee for the latter, that she would make no opposition to the Russian fleet. If neither England nor Russia be the object, the question recurs, who is it for? You know best, if our affairs with Spain are in a situation to give jealousy to either of us. I think it very possible, that the satisfaction of the court of London may have been pretended, or premature. It is possible also, that the affairs of Spain in South America, may require them to assume a threatening appearance. I give you the facts, however, and you will judge whether they are objects of attention or of mere curiosity. I have the honor to be, with sentiments of sincere esteem and respect, Sir, your most obedient and most humble servant, TH: JEFFERSON. P. S. I inclose herewith, an extract of a letter from the Count de Vergennes to the French Ambassador at the Hague, which will make a remarkable chapter in the history of the late revolution here. It is not public, nor should be made so by us. Probably those who have been the victims of it, will some day publish it. SIR, TO MR. DUMAS. Amsterdam, March 29, 1788. I have now to acknowledge the receipt of your favors of the 14th, 18th and 23rd instant. I would have preferred doing it in person, but the season, and the desire of seeing what I have not yet seen, invite me to take the route of the Rhine. I shall leave this place to-morrow morning, and probably not reach Paris till the latter end of April. In the moment we were to have conferred on the subject of paying the arrears due to you, a letter of the 20th of February, from the board of treasury was received, forbidding the application of money to any purpose, (except our current claims) till the June interest should be actually in hand. Being by the letter tied up from giving an order in your favor, I return you the letter you had written to Mr. Jay, on the supposition that the order for your arrears was given. It has been suggested, however, that if you could receive bonds of the loan, you could make them answer your purpose, and the commissioners say, this would in no wise interfere with the views of the treasury board, nor the provision for the June interest. I have, therefore, recommended to them in writing, to give you bonds to the amount of your balance, if you choose to take them, rather than to wait. I wish this may answer your purpose. I remember that in the conversation which I had the honor of having with you, on the evening I was at the Hague, you said that your enemies had endeavored to have it believed, that Congress would abandon you, and withdraw your appointments. An enemy generally says and believes what he wishes, and your enemies particularly are not those who are most in the counsels of Congress, nor the best qualified to tell what Congress will do. From the evidences you have received of their approbation, and from their well known steadiness and justice, you must be assured of a continuance of their favor, were they to continue under the present form. Nor do I see any thing in the new government which threatens us with less firmness. The Senate, who will make and remove their foreign officers, must, from its constitution, be a wise and steady body. Nor would a new government begin its administration, by discarding old servants; servants who have put all to the risk, and when the risk was great, to obtain that freedom and security under which themselves will be what they shall be. Upon the whole, my Dear Sir, tranquillise yourself and your family upon this subject. All the evidence which exists as yet, authorises you to do this, nor can I foresee any cause of disquiet in future. That none may arise, that yourself and family may enjoy health, happiness, and the continued approbation of those by whom you wish most to be approved, is the sincere wish of him, who has the honor to be, with sentiments of sincere esteem and attachment, Your most obedient and most humble servant, TO THE COMMISSIONERS OF THE TREASURY. GENTLEMEN, * Amsterdam, March 29, 1788. * I cannot close my letter, without some observations on the transfer of our domestic debt to foreigners. This circumstance and the failure to pay off Fiseaux' loan, were the sole causes of the stagnation of our late loan. For otherwise, our credit would have stood on more hopeful grounds than heretofore. There was a condition in the last loan, that the lenders furnishing one third of the money, the remaining two thirds of the bonds should remain eighteen months unsold, and at their option to take or not, and that in the mean time, the same bankers should open no other loan for us. These same lenders became purchasers of our domestic debt, and they were disposed to avail themselves of the power they had thus acquired over us as to our foreign demands, to make us pay the domestic one. Should the present necessities have obliged you to comply with their proposition for the present year, I |