Yesterday Mr Le Couteulx, called upon me in order to communicate to me, the Contents of his Letters from you, concerning the Remittance of the Money from Holland. I told him he must write to Messrs Willinks &c the Directors of the Loan upon the Subject, and that the whole matter being under your Direction; you and the Bankers must negotiate it. He Said your Desires could easily be complied with and very advantageously for the United States.— He had written to the Dr and recd an Answer that he could not yet Say whether he could comply or not. Soon after Mr Grand came in to Shew me your Letter of Credit, upon Messrs Willinks &c and Shewed me a State of his Accounts by which he would be a Million of Livres in Advance, after paying the Interest of the Ten Millions of Livres borrowed by the King in Holland.1

This Morning I went out to Passy to consult with the Dr, about your Letters. He told me, he was preparing a Memorial to the King as Strong as he could pen, but could not foresee what would be his Success. There are great Complaints of Scarcity of Money here, and what there is, is Shut up.— The Kings Loans dont fill.— The War has lasted so long and Money has been Scattered with so much Profusion, that it is now very Scarce in France, Spain and England as well as Holland. If I could quit the Negotiations for Peace and return to the Hague, I have great doubts of Success with the States General.— And an Application to them which must be taken ad referendum, became the Subject of deliberations and drawn out into an unknown Length, and perhaps never obtain a Unanimity which is indispensible, would immediately cast a damp upon my Loan already opened, or any other that I might open in the Same Way, 39perhaps put an entire stop to it. So that after reflecting upon the Subject as maturely as I can, it Seems to me Safest, to trust to the Loan already opened. The Influence of Such an Application to the States in a political View, upon England, and the Neutral Powers, would not be favourable.

The Measure you have taken, in drawing the Money out of Holland will have an unfavourable Effect.— a Principal Motive to lend Us, has been to incourage a Trade between Us and them, but when they find that none of the Money is to be laid out there in Goods, I fear We shall get little more.

If I were to lay a Memorial before their High Mightinesses, and had Authority to propose a Treaty to borrow a sum of Money and pay the Interest Annually in Tobacco Rice or other Produce of America deliverd at Amsterdam, and to pay the Capital off in the same manner I am not very clear in my Expectations of success. But I have no Instructions for this, nor do I know that Congress would approve it.

In Short Sir I can give you no hopes, nor make any Promises but to do as well as I can.

With the greatest Respect, &c

Accept of my thanks for your favor of 28th. Septr.—1 The Analogy of Religion & of Manners are undoubtedly not less advantages in the Connection with Holland, than those of Commerce and Republicanism.

The Influence of the Stadtholder & his Court, the Intrigues of the English; the Weight of a numerous, wealthy & powerful English 40Party; the secret and open Negotiations of Neutral Powers, were not the only Obstacles I had to encounter. Secret dark Insinuations against my personal Character from a Quarter from whence they ought not to have come, embarrassed me more than all the rest. Patience & Perseverance, however, at last overcame them all.

My first Object was to hear the public Voice, and to discover the national Sense. I had soon Information from a Variety of Sources, which satisfied me beyond a doubt. I ventured to presume upon it, knowing a little of the Constitution of the Country. It is perhaps the only Country of much Consequence in Europe, where I should have hazarded so much. The Course I took would by no means succeed any where else

The Advantages arising from it are, 1st. a little Money for our able Financier— 2dly. the prevention of a separate Peace. 3dly. Occupation for a considerable Squadron of the British Navy for a considerable part of the Campaign. 4thly. A little less Dependence on France. 5thly. more Zeal & Necessity in England for Peace. 6thly. a little more Inclination in Spain to strike with us. 7thly. more Disposition in the Neutral Powers to a share in our Commerce and Confidence, and to admit us into the Neutral Confederation. 8thly. more Consideration to our Ministers in every Court. 9th. more Dignity to our Cause in the Eyes of all Nations.

You have been a little too busy in your Profession of late, and are getting Money too fast for my Comfort. I have read the Speculations on a Navy with vast pleasure.2 The Subject & the Author were enough to interest me, if the Execution had been less able.

I am, dear Sir, your's