shall form a sinking fund for the discharge of the principal; and if it shall be found insufficient, the states will be called upon to enlarge their grants of revenue.

PAPER No. IV.

Extract of a letter from the hon. B, Franklin to the superintendent of finance, dated 23d December, 1782, and a letter of 15th of March, 1783, to the same, from the hon. the minister plenipotentiary of France, as follow:

PASSY, December 23, 1782. "Friday last order was given to furnish me with 600,000 livres immediately, and I was answered by M. de Vergennes, "that the rest of the 6,000,000 should be paid us quarterly in the course of the year 1783."

"I pressed hard for the whole sum demanded, but was told "it was impossible.”

"Our people certainly ought to do more for themselves. It is absurd the pretending to be lovers of liberty while they grudge paying for the defence of it. It is said here, that an impost of five per cent. on all goods imported, though a most reasonable proposition, had not been agreed to by all the states, and was therefore frustrated; and that your newspapers acquaint the world with this, with the non-payment of taxes by the people, and with the non-payment of interest to the creditors of the public.

"The knowledge of these things have hurt our credit and the loan in Holland, and would prevent our getting any thing here but from government. The foundation for credit abroad should be laid at home; and certain funds should be prepared and established beforehand, for the regular payment at least of the interest.”

PHILADELPHIA, March 15, 1783.

SIR, I have the satisfaction to inform you that his majesty procures for the United States a loan of 6,000,000, to be employed in the war department during the course of the current year. While I announce to you this new mark of the king's friendship for the United States, I must go into some details which relate to your operations, and which will inform you of the motives which have induced his majesty to make a new effort in favor of his allies.

During the last year, sir, I rendered an account to his majesty's ministers of the order which appeared to me to be introduced into your department, of the re-establishment of public credit, and of the economy which accompanied your operations. I added, that I considered the establishment of a general revenue for paying the interest and gradual redemption of the principal of the public debt, as extremely probable. The delays and difficulties of communication would not permit me to wait until that operation was completed by the different legislatures, before I declared the wants of the United States; and therefore I undertook to write to the count de Vergennes, that the disposition of the people to fulfil the engagements taken and to be taken by Congress, seemed to me sufficiently favorable to determine his majesty to lend for the year, new succour to the United States if the situation of his finances would permit. These assurances obtained the loan of 6,000,000; but the event has proved that I was deceived in the hopes which I thought myself enabled to give my court; and the affairs of your finances, far from being bettered since the month of September, the period at which my letters on this subject were written, have on the contrary gone backward; so that I perceive no certainty of the reimbursement of the sums formerly lent, or of those which now are so. Thus, sir, my hasty assurances have induced his majesty to make that advance, and in the moment when I am informed of it, I am under the disagreeable necessity of informing his minister that the hopes I had given are vanished, and that my assurances were without foundation. I will say nothing of the personal embarrassment which I am reduced to by these circumstances; but I will take the liberty to observe, that the best remedy in the present conjuncture is, to take as soon as possible those measures which were not taken when I announced them.

The count de Vergennes informs me, sir, that the 6,000,000 are lent to the United States in the same manner and under the same conditions with the sum which was lent last year. That is to say, that it shall be paid monthly, at the rate of 500,000 livres per month. But as it appears from what you did me the honor to write on a former occasion, that you had anticipated a part of this subsidy, I must pray you to consider, that the first months of this year will have been employed in payment of those anticipations, and that it will be proper so to combine your drafts, as that they shall not be presented but at the monthly periods in which the funds are to be provided.

I have had the honor to inform you, sir, that this money is lent to the United States to enable them to carry on the war. The wisdom of Congress will determine according to circumstances, on the manner of effecting that important object, and of compelling the enemy by joint efforts to conclude a solid and permanent peace.

It remains for me to inform you, sir, that the king was unable to make this last effort without extreme difficulty. I have had the honor to communicate those which oppose considerable loans. They are so great, that I am commanded to inform you, in the most positive terms, that it will be impossible for the king, in any case whatever, to obtain new advances for Congress for the next year. As to the resources which you may seek elsewhere than in France, the details contained in those letters which I had the honor to read to you, will not permit a hope of success until the United States shall have established a permanent public revenue; and the delay and

repugnancy with which they proceed in that business being known in Europe, the disposition to lend money to Congress ceases. Lenders place their money elsewhere: those speculations which would have been directed towards the United States take a different turn, and it will be extremely difficult to bring them back.

I abstain from repeating here the other parts of the count de Vergennes's despatches, which I had the honor to communicate, because the truths they contain are well known to you, and because they may all be reduced to this single position, that without a speedy establishment of solid general revenue, and an exact performance of the engagements which Congress have made, you must renounce the expectation of loans in Europe.

I am ordered also, sir, to inform Congress, that my court expect they will have taken final and satisfactory measures to secure payment of the interest of the debt contracted with his majesty by the United States; but I content myself with communicating this circumstance to you, and before announcing it directly to Congress, I will wait till their present embarrassments shall be diminished.

From these details, sir, you will be able to judge of the impossibility of negotiating bills upon your plenipotentiaries beyond the funds which remain free from the 6,000,000 lent this year. It is very clear, that such bills will not be paid by us; and it is from perfect confidence in your regularity upon that subject, that I shall assure the count de Vergennes, he may be certain no demand will be made on him beyond the sums already granted. I have the honor to be, &c.

PAPER No. V.

The contract between his most Christian majesty and the United States of America, entered into by the count de Vergennes and Mr. Franklin the 16th of July, 1782, and ratified by Congress the 22d day of January, 1783.

The king having been pleased to attend to the requests made to him in the name, and on behalf of the United Provinces of North America, for assistance in the war and invasion under which they had for several years groaned; and his majesty, after entering into a treaty of amity and commerce with the said confederated provinces, on the 6th of February, 1778, having had the goodness to support them, not only with his forces by land and sea, but also with advances of money, as abundant as they were effectual, in the critical situation to which their affairs were reduced. It has been judged proper and necessary to state exactly the amount of those advances, the conditions on which the king made them, the periods at which the Congress of the United States have engaged to re-pay them to his majesty's royal treasury, and in fine, to state this matter in such a way as for the future to prevent all difficulties capable of interrupting the good harmony which his majesty is resolved to maintain and preserve between him and the said United States. For executing so laudable a purpose, and with a view to strengthen the bands of amity and commerce which subsist between his majesty and the said United States: we, Charles Gravier de Vergennes, &c. counsellor of the king in all his councils, commander of his orders, minister and secretary of state, and of his commands and finances, vested with full powers of his majesty to us given for this purpose: and we, Benjamin Franklin, minister plenipotentiary of the United States of North-America, in like manner vested with full powers of the Congress of the said states for the present purpose; after duly communicating our respective powers, have agreed to the following articles:

ARTICLE I

It is agreed and certified, that the sums advanced by his majesty to the Congress of the United States, under the title of a loan in the years 1778, 1779, 1780, 1781, and the present, 1782, amount to the sum of 18,000,000 of livres, money of France, according to the following 21 receipts of the above-mentioned under written minister of Congress, given in virtue of his full powers, to wit:

13 27 November, ditto, 1,000,000

2 19 May,

-4,000,000

3 3 August,

4 1 November, ditto,

750,000

15 15 May,

ditto,

750,000

1 August, ditto,

1,000,000

18

15 November,

ditto,

750,000

7 4 October, ditto,

250,000

-4,000,000

8 21 December, ditto,

-1,000,000 20

1 July,

5 of the same month,

3,000,000

10 23 May,

ditto,

750,000

-6,000,000

11 21 June,

Amounting in the whole

12 5 October, ditto, 750,000

18,000,000

to 18,000,000, viz.

By which receipts the said minister has promised in the name of Congress, and in behalf of the thirteen United States, to cause to be paid and reimbursed to the royal treasury of his majesty, on the 1st of January, 1788, at the house of his grand banker at Paris, the said sum of 18,000,000 millions, money of France, with interest at five per cent per annum.

ARTICLE II.

Considering that the payment of so large a capital at the one stipulated period, the 1st of January, 1788, may greatly injure the finances of the Congress of the United States, and it may perhaps be even impracticable on that footing, his majesty has been pleased for that reason to recede in that respect from the tenor of the receipts which the minister of Congress has given for the 18,000,000 livres tournois, mentioned in the foregoing article, and has consented that the payment of the capital in ready money, at the royal treasury, be in twelve equal payments of 1,500,000 livres each, and in twelve years only, to commence from the 3d year after a peace.

ARTICLE III.

Although the receipts of the minister of the Congress of the United States specify, that the 18,000,000 of livres above-mentioned, are to be paid at the royal treasury, with interest at five per cent. per annum, his majesty being willing to give the said United States a new proof of his affection and friendship, has been pleased to make a present of, and to forgive the whole arrears of interest to this day, and from thence to the day of the date of the treaty of peace; a favour which the minister of the Congress of the United States acknowledges to flow from the pure bounty of the king, and which he accepts in the name of the said United States with profound and lively acknowledgments.

ARTICLE IV.

The payment of the said 18,000,000 of livres tournois shall be in ready money at the royal treasury of his majesty at Paris, in twelve equal parts, and at the terms stipulated in the above 2d article. The interest of the said sum, at five per cent. per annum, shall commence with the date of the treaty of peace, and shall be paid at every period of the partial payments of the capital, and shall diminish in proportion with the payments. The Congress of the said United States being left however, at liberty to free themselves sooner from this obligation by antici pated payments, in case the state of their finances will admit.

ARTICLE V.

Although the loan of 5,000,000 of florins of Holland, agreed to by the states general of the United Provinces of the Netherlands, on the terms of the obligation passed on the 5th of November, 1781, between his majesty and the said states general, has been made in his majes ty's name, and guaranteed by him; it is nevertheless acknowledged by these presents, that the said loan was made in reality on account and for the service of the United States of North-America, and that the capital, amounting at a moderate valuation, to the sum of 10,000,000 livres tournois, has been paid to the said United States, agreeably to a receipt for the payment of the said sum, given by the undersigned minister of Congress, the 7th day of June last.

ARTICLE VI.

By the convention of the said 5th of November, 1781, the king has been pleased to promise and engage to furnish and pay at the general counter of the states general of the Netherlands the capital of the said loan, with the interest at four per cent. per annum, without any charge or deduction whatever to the lenders, so that the said capital shall be wholly re-paid after the space of five years, the payments to be made in ten equal periods, the first of which to commence the 6th year from the date of the loan, and afterwards from year to year to the final payment of the said sum; but it is in like manner acknowledged by this act, that this engagement was entered into by the king, at the request of the undersigned minister of the United States, and on the promise by him made in the name of Congress, and on behalf of the thirteen United States, to cause to be re-imbursed and paid at the royal treasury of his majesty at Paris, the capital, interest and cost of the said loan, according to the conditions and terms fixed by the said convention of the 5th of November, 1781.

ARTICLE VII.

It is accordingly agreed and settled, that the sum of 10,000,000 livres tournois, being by a moderate computation, the principal of the loan of 5,000,000 of Holland florins abovemen tioned, shall be reimbursed, and paid in ready money at the royal treasury of his majesty at Paris, with the interest at four per cent. per annum, in ten equal payments of 1,000,000 each, and in ten terms, the first of which shall be on the 5th of November, 1787; the second, the 5th of November, 1788, and so from year to year till the final payment of the said sum of 10,000,000, the interest lessening in proportion with the partial payments of the capital. But in consequence of the king's affection for the United States, his majesty has been pleased to charge himself with the expense of commissions and bank for the said loan, of which expenses his majesty has made a present to the United States, and this their undersigned minister ac cepts with thanks in the name of Congress, as a new proof of his majesty's generosity and friendship for the said United States.

ARTICLE VIII.

With regard to the interest of the said loan during the five years preceding the first term of payment of the capital, as the king has engaged to pay it at the general counter of the states general of the Netherlands, at the rate of four per cent. yearly, and every year, counting from

the 5th of November, 1781, according to the convention of that day, the minister of Congress acknowledges that the re-payment of that is due to his majesty by the United States, and he engages in the name of the said United States, to cause payment thereof to be made, at the same time and at the same rate at the royal treasury of his majesty; the first year's interest to be paid the 5th of November next, and so yearly, during the five years preceding the first term for the payment of the capital, fixed as above on the 5th of November, 1787.

The high contracting parties reciprocally bind themselves to the faithful observance of this contract, the ratifications of which shall be exchanged in the space of nine months from this day, or sooner if possible.

In testimony whereof, we the said plenipotentiaries of his most Christian majesty, and of the thirteen United States of North-America, in virtue of our respective powers, have signed these presents, and thereunto fixed the seal of our arms.

Done at Versailles, the 16th day of July, 1782.

GRAVIER DE VERGENNES, (L. S.)
B. FRANKLIN,

PAPER NO. VI.

(L. S.)

The contract entered into by the hon, J. Adams, in behalf of the United States, with sundries, for a Joan of 5,000,000 of florins:

VAN HOLE, Notary.

On the 11th day of June, in the year 1782, appeared before me, Pieter Galenus Van Hole, zotary of Amsterdam, admitted by the hon. court of Holland.

The hon. John Adams, esq. minister plenipotentiary on the part of the United States of America by their high mightinesses the lords, states general of the United Netherlands, &c. &c. in quality, as especially qualified and authorized by the abovementioned states of America in Congress assembled, for and in behalf of the said states of America, to raise a loan with any person or persons, states or companies, with subjoined assurance in good faith to ratify and fulfil all that shall be done in this respect by him, honorable appearer, according to authentic copy and translation of the original commission or power exhibited to me, notary, and deposited in my custody, in behalf of the joint money lenders.

The hon, appearer residing in the Hague, but being now in this city.

And the hon. appearer acknowledged himself, in his aforesaid quality, and thus in the name and in behalf of the above-mentioned states of America, to be duly and lawfully indebted to and in behalf of sundry persons or money lenders, in all a sum of 1,000,000 of guilders, Dutch current money, arising from and on account of so much ready money received by him hon. appeater, in his aforesaid quality, to his perfect satisfaction, from the said money lenders, in consequence of the receipt hereafter mentioned, to be signed by the hon. appearer, under the authentic copies hereof, expressly and formally disavowing the excuse of untold monies.

And the hon. appearer promised, in his aforesaid quality, to re-pay in this city the said sum of 100400 of guilders, free from all costs, charges and damages, to the above-mentioned money leaders, or their assigns, at the expiration of 15 years after the 1st day of June, 1782; and that in the following manner, to wit:

That the above-mentioned capital shall remain fixed during the space of 10 years, and that with the 11th year, and thus on the 1st day of June, 1793, a fifth part, or 200,000 guilders of the sud capital of 1,000,000, shall be redeemed, and in the same manner from year to year until the 1st day of June, 1797, inclusive, so that the whole capital shall be redeemed and discharged within the above-mentioned space of 15 years.

And that for said capital, at first for the whole, and afterwards for the residue, at the expiration of every year, interest shall be paid at the rate of five per cent. in the year commencing the first day of June, 1782, and to continue until the final accomplishment, and that on coupons, to be signed by or for account of said hon. appearer in his aforesaid quality.

That the above-mentioned redeeming shall be performed by drawing in presence of a notary and witnesses in this city, after the expiration of the first mentioned 10 years, in such a aner that the Nos. of the obligations drawn shall be by times made known in the public

papers

That the payment of the interests, as also the redeeming of the respective periods, shall be made at the compting houses of the hereafter-mentioned gentlemen directors, or at such other places within this city, as shall likewise be advertised in the public papers.

That the directors of this negotiation shall be Messrs. Wilhelm et Jan Willink, Nicolaas et Jacob Van Staphorst and de la Lande et Fynje, merchants of this city, who are by these preseats thereto named and appointed by the hon. appearer in his aforesaid quality.

The honorable appearer promising and engaging, in the names of his constituents, that the

of the interests and of the redeemings to be made, from time to time, of the said capital, shall be in due time remitted to the aforesaid gentlemen directors, their heirs or successors in good bills of exchange, American products, or in ready money, without any abatement or deduction whatsoever.

That this obligation shall never be subject to any impost or taxes already laid or in time to come to be kid in the said United States of America, even in case į which God forbid] any war, hostilities or divisions should arise between the aforesaid United States or any of them, on the one side, and the states of these lands on the other, that the payment of the capital or interests of this obligation can in no wise nor under any pretext whatsoever be hindered or delayed.

The honorable appearer in his aforesaid quality, promising and engaging, moreover, for and in the names of the said United States, that there shall never be made by them or on their parts, or any of them in particular, any convention or treaty, public or private, at the making of peace or otherwise, by which the validity and accomplishment of these presents might be prejudiced, or whereby any thing contrary thereto might be stipulated, but that without any exception the contents hereof shall be maintained in full force.

The honorable appearer in his aforesaid quality Likewise promises, engages and binds himself by these presents, that this engagement shall be ratified and approved as soon as possible by said United States in Congress assembled, and that authentic copy translation of said ratification, with the original, shall be deposited in custody of me, notary, to be there kept with said authentic copy translation of the commission or power of him honorable appearer, and the engrossed hereof, for the security of the money lenders, until the above-mentioned capital and interests as aforesaid shall be redeemed and paid off.

And there shall be made of this act [as the honorable appearer in his aforesaid quality consents) above and besides the above-mentioned engrossed, 1000 authentic copies which shall be of the same force and value and have the same effect as the engrossed one, under every one of which copies shall be placed a receipt of 1000 guilders Dutch current money, either on name or in blank, at the choice of the money lenders, to be signed by him honorable appearer, and which receipts shall be respectively numbered from No. 1 to 1000 inclusive, and countersigned by above-mentioned gentlemen directors, and duly attested by me, notary, as a testimony that no more than 1000 obligations are numbered in virtue of this act. All which authentic copies, with the receipts thereunder placed, shall at the redeeming of the capital, be restored by the bearers.

On failure of prompt payment, as well as of the capital, as of the interests at the appointed periods, the capital or residue thereof may be demanded by the gentlemen directors in behalf of the money lenders, who shall be then interested therein, and the aforesaid principals and committents of him, honorable appearer, shall in that case be held and bound to redeem and discharge immediately in one sum the remaining capital with the interests and charges. For the accomplishment and performance of all the above written, the honorable appearer binds in his aforesaid quality, and thus in the names and on the part of the above-mentioned United States of America, the said United States of America jointly and each of them in particular, together with all their lands, chattels, revenues and products, together with imposts and taxes already laid and raised in the same, or in time to come to be laid and raised, and thus of all the United States of America jointly and of each of the same in particular for the whole. He the honorable appearer renouncing, in the names as above, for that purpose expressly beneficium divisionis, as likewise de duobus vel pluribus reis debendi, signifying a retribution of debts, and that when two or more are indebted, each of them can satisfy with the payment of their portion; the hon. appearer promising in his aforesaid quality, never to have recourse to the said or to any other evasions whatsoever.

This being passed (after translation into English was made hereof, and which likewise is signed by the honorable appearer, and deposited in the custody of ine the said notary) within Amsterdam aforesaid, in the presence of

GIDION VICTOR et
CORNELIS MARCHANT,

} Witnesses

(Signed)

P. G. VAN HOLE, Notary.

Coll: Faithfully translated from the Dutch, Amsterdam, this 17th day of June, 1782.

No. 1.

JOANNES VERGEEL, L. Son.
Sworn Translator.

There are four others of the same tenor and date, numbered 2, 3, 4, 5, making in the whole 5,000,000 guilders; and each of the said contracts is ratified by Congress.

PAPER NO. VII.

To the United States in Congress assembled.

The address and petition of the officers of the army of the United States,

Humbly sheweth, that' we, the officers of the army of the United States, in behalf of ourselves and our brethren the soldiers, beg leave, with all proper deference and respect, freely to state to Congress, the supreme power of the United States, the great distress under which we labor. At this period of the war it is with peculiar pain we find ourselves constrained to address your august body, on matters of a pecuniary nature. We have struggled with our difficulties, year after year, under the hopes that each would be the last; but we have been disappointed. We find our embarrassments thicken so fast, and have become so complex, that many of us are unable to go further. In this exigence we apply to Congress for relief as our head and Sovereign.