WILLIAM CARMICHAEL was a native of Maryland. At the beginning of the Revolution he was in Europe. From London he went over to Paris in the spring of the year 1776, and was there when Silas Deane arrived as a commercial and political agent from the United States. He lived with Mr. Deane for some time in Paris, and aided him in his correspondence and the transaction of his affairs. It was suggested by the Prussian Minister that the King would be pleased with information respecting American commerce, and would receive at Berlin any American who could give such information. Mr. Dean proposed the enterprise to Mr. Carmichael. He performed the journey in the autumn of 1776, by way of Amsterdam.

From Berlin he returned to Paris, where he lived on intimate terms with the American Commissioners, occasionally executing specific duties at their request for more than a year, till he sailed for his native country. He arrived at Boston in May, 1778, and soon afterwards received an appointment which had recently been conferred on him by Congress, as Secretary to the Commissioners at the Court of France. It does not appear that he ever accepted this appointment, for on the 19th of November following he took his seat in Congress as a delegate from Maryland.

Mr. Carmichael remained in Congress till Mr. Jay was elected Minister Plenipotentiary to the Court of Spain. He was chosen Secretary of Legation to the same mission on the 28th of September, 1779, and went to Spain in company with Mr. Jay, and remained with him during the whole of that Minister's residence in Madrid. When Mr. Jay joined Dr. Franklin in Paris, June, 1782, to aid in the negociations of peace, Mr. Carmichael was left as Chargé d'Affaires at the Court of Spain. After the peace he was regularly commissioned in that character by Congress, and recognised as such by the King of Spain.

He continued to reside there in the same capacity during the term of the old Confederation, and for some time after the organization of the new government under Washington. In the year 1793, Mr. Short was joined with him in a commission for negociating at Madrid a treaty between Spain and the United States. Several months were passed in this attempt, but without success. Mr. Carmichael returned soon afterwards to the United States.

3

Previous to your attention to what follows, it will be necessary for you to know that I have lived with Mr. Deane since his first arrival at Paris; that I took that city in my way from London to Nantes to find a passage to my native country, and with despatches which Mr. Arthur Lee entrusted to my care for the honorable Congress. Having a relapse of a disorder which prevented me from travelling, I stopped at Paris, and endeavored to find out, by means of Count d'Estaing, and other persons of eminence, the sentiments of the French Court respecting our affairs; and the moment I knew of Mr. Deane's arrival, offered him all the services in my power; and, of consequence, we have lived together until the 10th of the present month.

At that time the agent of the King of Prussia, who had often, as Mr. Deane has informed you, made proposals of a commercial nature, expressed a desire that some American would go to Berlin; and this he gave us to understand was at the instance of his Sovereign, who wished to have a clear idea of the nature of our commerce, and expressed a curiosity, which he wished to gratify by a minute detail of our affairs. Mr. Deane thinking this an opportunity not to be neglected to interest a Prince who, for several years, has been

dreaming of making his port of Emden an Amsterdam, proposed it to me. However unequal to the task, I have cheerfully accepted it, happy to find any opportunity of showing with what a fervent zeal I am devoted to the glorious cause which, at present, by interesting their humanity as well as policy, gives us so much consequence in the eyes of Europe.

Here I have endeavored to engage merchants to speculate in a direct commerce to America, to find out the sentiments of the people in general respecting us; to know whether, in case of necessity, the United States would be able to negociate a loan; whether England would be able to obtain further credit, and, by this barometer of the ability of princes, to discover, their present situation. On these heads I have written Mr. Deane; but having an opportunity by the way of St. Eustatia, and thinking none should be neglected of giving information, though mine, perhaps, may not be of importance enough to merit that title, I have taken the liberty of addressing the honorable Committee. Arriving but two days after the accounts had reached this city of our misfortune on Long Island, I found many, even of the sanguine friends of America, dejected, and those of England almost in a frenzy of joy. In this disposition, it is easy to judge, no hopes could be entertained of engaging merchants in a direct trade. I find they have the greatest inclination to serve us, and at the same time themselves; for no people see their interests clearer; but their fears that we shall be subdued, the confident assertions of the friends of England confirming these apprehensions, the prodigious sums they have in the English funds, with this unlucky business at New York, all conspire to prevent direct speculation.

As my letters from Paris introduced me to the first houses here, I have had the best opportunity of knowing their sentiments, and I can venture to say that, with many who are apparently adverse to us, it is interest combating with principle, for insulted, searched, and plundered as the Dutch were the last war, and are at present, there are individuals who by no means want sensibility to feel, though the public wants spirit to resent the injury. The States have, however, in answer to a fresh remonstrance of General Yorke, declared that their ports are open to vessels of all nations, and that their trade to and from their own Colonies shall be unmolested, their subjects complying with the ordinances issued by their High Mightinesses.

In fact, their prohibition of exporting warlike stores extends to all British subjects. I hope it will not be long before all Europe will own us in another character. It is very certain that, without a very material and apparent success of the British arms in America, a loan would be very slowly negociated for England here. There is nothing hinders them now from selling out of the English funds but their not knowing what to do with their money; for this country may be called the treasury of Europe, and its stock of specie is more or less according to the necessity of the different Princes in Europe. It being a time of peace, the call has not been very great of late.

Having mentioned the credit of England, that of France is next to be considered, and I am very sorry to say that has been very low here of late. The dreadful mismanagement of the finances in the late King's reign, and the character of the late Controller General, M. d'Olugny, had reduced it so low that it was impossible to borrow anything considerable on perpetual funds. Perhaps a Minister of Finance, in whose probity the world have a confidence, may restore their credit. At this moment that is in some measure the case, for the French stocks rise on the appointment of M. Taboreau. That it is possible for France to borrow may be demonstrated; for at the time M. Turgot was removed, he was negociating a loan here, and was likely to succeed, for sixty millions of guilders. The credit of Spain is extremely good, and that Kingdom may have what money it will, and on the best terms. The Emperor's credit is also good, not as Emperor, but from his hereditary dominion. Sweden and Denmark both have good credit; the former the best; they have money at four per cent.; and it is not long since the King of Sweden. borrowed three millions of guilders at this interest, to pay off old debts at five per cent. His interest is paid punctually. Prussia has no credit here, but the King's treasury is full by squeezing the last farthing from the people, and now and then he draws a little money from this Republic by reviving obsolete claims. The credit of the Empress of Russia is very good; for she has punctually paid the interest of twelve millions of guilders which she borrowed in her war with the Turks, and has lately paid off one million and a half of the principal. These are the strongest circumstances she could have in her favor with a mercantile people. I have this statement of credit from persons employed in negociating the several loans, and therefore can depend upon the truth of the information.